Homepath Pricing is a Joke!
I'm hoping someone can shed some light on a very frustrating problem I'm encountering with Homepath properties in Madison, WI.
I'm looking to purchase, as an owner occupier, a single family home in Madison, WI. I recently found a perfect little house on Homepath in a A neighborhood. Homepath posted the asking price yesterday at $210,000 under Firstlook. The problem is the FMV for this property is nowhere near $210,000! Looking at comps with my realtor, the FMV is much closer to $160,000 - $170,000. This is the not first time this has happened. It seems every Homepath home I look at is over priced by at least 20-30%.
I understand Homepath eliminated its financing program, so I don't understand their logic in pricing homes far above what a property would appraise at. An owner occupier like myself wouldn't qualify for conventional bank mortgage because an appraisal won't support the purchase price. I was under the impression the Firstlook program was designed to get owner occupiers into affordable homes. This is obviously not what is going on here. Can someone please share some insight or strategies into buying Homepath homes at actual fair market value.