I don't know if anyone can give me some advice on a sticky Fannie Mae REO home situation I am in. This is a Homepath property and I am am investor.
The property was originally listed for 219K, then dropped to 199K, then 189K I estimated it to be around 175K. I offered 160K and after some back and forth countering we arrived at 166K. After I finished the inspection, we found some issues where the inspector discovered two issues that would cost 3000 to fix, I asked for a split down the middle 2000 repair credit and they agreed. So the net price would be 164K. I did inspection, survey, paid for HOA application fee, paid to get governing documents etc etc etc...and one day before closing they said there was a problem with the legal description and hence cannot close. They said they need to find original owner to sign off the old deed or they need to reforeclose. I asked them to do a 90 day extension of contract, they didn't want to, they did a 30 day instead, and after 30 days I asked for my 10% deposit back, and walked from the deal. I told them to let me know when it's available.
Four months gone by, I had my agent call every months and recently I was told they have rectified the situation and our deal is back alive. We expected we would just need to "reactivate" the expired contract and change the closing date. But no, two days ago they put the property back on the market. The asking price is now 167K. We called and were told that they had to do that and we should submit a new contract, they have a new asset manager.
I am a bit frustrated they did not let me put my foot back in the door so to speak, and instead want to make me jump through all the hoops again.
Lo and behold, I did some digging and found out two months ago, another property, same layout, just next door, sold at 150K, this is 16K lower than our contract price. That house has same size, same layout, a larger lot size, but no updated kitchen.
So, I am thinking that sale becomes a SOLID COMP. Can I submit a new offer close to 150K when they already know I had previously agreed to 166K? Can I somehow submit the next door sale as a comp as part of my offer?
Advice?
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I went ahead and submitted a new offer of 150K. My original contract price with them was 166K before next door sold at 150K.
Today they countered back at 166K (same price as my original contract). My agent was told that they did a new BPO on the property.
I want to counter back at the same amount, 150K. That was truly my max.
Should I just counter back at 150K or should I add some token amount, like $150100?
Hi Jack. Currently, since you no longer have a contract, you are just a buyer who wants to make an offer. So yes you can offer whatever you want. And of course Fannie can accept, reject or counter.
Good luck!
Bryant, I understand.
What I am curious about, is that since they had a contract with me previously at a higher price, does that give them a leverage knowing I was willing to pay a 166K four months ago?
My agent says if I really want the house I should submit the same contract same price, or else they would think I am playing games.
But I am thinking, this is the same listing broker, different asset manager, a "new" listing at a much lower asking price. An adjacent property literally right next door sold at 150K last month, why would it be unreasonable for me to have a different assessment now? They can take it, leave it or counter it.