Please help me with my next offer
I submitted my really low offer, along with the short sale addendum suggested by the listing agent, who is also mine, and got a verbal rejection/counter.
My offer was a little less than 50% of what I think ARV would be. I think ARV will be $135-140K
This house is approx 1900sq ft. Comps for houses a little more than half the size (1000 and up) are available, and run from 89K to 135K in similar nearby neighborhoods. One 1238 sq ft house with 1 car carport around the corner in a better location sold recently for $126900.
This house is so large because someone took the large 2 car carport and turned it into living space. So where other houses have a carport or 2, or a 2 car garage, this has neither.
The agent said they really do not want to do a short sale. Neither do I, so that’s good.
In their verbal counteroffer, they said they will drop about 5K off, that they would rent it instead of selling, and now we’re only 91K apart.
I will have the agent tell them to put their counter in writing, as per the contract.
I did include a POF (that shows more than what my offer was) and a cover letter that includes that there are no inspections and no contingencies included, that I have funds available, that it will be owner occupied. This is a property that was listed about 5 months ago and has had 3 lookers, and only my offer.
In my counter to them (offer 2) I plan to increase my offer by about 5K, and include a list of the major repairs as I see them, but still not ask for either inspection period or contingencies. According to the agent, there are no recent comps to include, though there have been recent sales. I will ask for clarification.
The necessary repairs as I see them account for only a small fraction of the difference. I have been in a few houses in that subdivision, and just to bring it up to neighborhood standards on the inside will require about 40K, in my very uneducated opinion. Based on what I think I do know, just tiling the floor all the same and painting will be about 20K, the rest is remodel of kitchen, both baths, and the other work, as well as unforeseen problems.
According to the agent, they owe 12,000 less than the list price, and have only the one mortgage. If the house were in good condition, in today’s market, it would still not sell quickly at what they owe.
The agent that even if they rented it as is, its condition is so poor that any renter would destroy it further.
They bought in Nov 2004, when the market was still going up. Prices have fallen.
Any suggestions on my next offer?
Thanks,