Fannie Mae Home Path negotiation question
Hello all!
I've heard excellent reviews about this site and would like to gain some insight on purchasing a Fannie Mae Home Path foreclosure. I will provide as much detail as possible and can expand upon any area if that helps.
I am Interested in a home located in a very desirable neighborhood. The values of surrounding properties are quite positive and I have done my research in regards to prior foreclosed homes in this same development. All were purchased in late winter/early spring 2017 and prices range from $82-$96 per square foot. All were rehabbed and flipped for $370-$400k within 4-5 months. All were nearly identical square footage and similar in condition (fair/required minimal-moderate rehab). None remained owner occupied.
The property I am interested in is currently listed at $125/sq ft, has been rehabbed (carpet, paint, appliances, "newer HVAC" and Hot water heater) by Fannie Mae and is approximately 80 days in the market with no pending offers.
I completed the Home Path program to qualify for the additional 3% toward closing but do not qualify as a first time home buyer. I do, however, plan to do additional renovations and remain in the home.
I am working with a seasoned realtor who believes Fannie Mae won't go much below $117/sq foot ($114.50/sq ft after 3% discount). I feel fair market value compared to comps should be $99-$110/sq ft as many necessary upgrades will be required (no home inspection yet but water is noted in basement, bathrooms need renovated, doors need replaced, siding and gutters need repair/replaced, question on age of roof).
She has agreed to submit my starting bid at $104/sq ft. Curious to receive feedback on the experience of others in similar situations and gain a better grasp on the discount potential here knowing it will be owner occupied. Any and all feedback is very much appreciated! Thank you in advance for reading and considering taking the time to provide your feedback.