REO vs. uninformed buyers
Hello All, I have a question regarding bank fantasy pricing vs. buyers totally overpaying.
This is the scenario. Bank bought back foreclosure, loan amount was for $208k a couple years ago. Buyer realized he overpaid by approximate value of two brand new trucks....and walked without doing a stitch of work. Bank is pricing it at approx. $245k. Market ARV is realistically $270k. It needs about $80k worth of work and that doesn't include any margin or profit. Realistic buying price is about $136k vs. bank asking price of $245k...and that will give you 20% profit if you're lucky. (I'm in construction, I know pricing)...
This has been on the market for 6 months. My question is this.......... What will give first in this situation. Will the bank realistically price it eventually or will some uninformed dreamer cough up the money again and lose $80k?