This is a specific situation and I am hoping for some help from Dean's now expert students out there!
I am interested in purchasing a short sale property in Northwest Florida. The owners originally purchased it for $501K. The bank had it listed for $250K and have dropped it down to $219K. It has sat on the market since at least last Christmas with offers trickling up from $150K up to mine at $187K which is under market value. Sales in that area for like properties have ranged between $198K and $200K.
The issue now is the bank was just given an offer of $210K on this property. I really do want to own this property, not just for investment reasons but for my family, but I do not want to make a purely emotional purchase and overpay for it. Where do I go now with this bid on this property? Do I offer more than $210K for it, knowing it will not appraise, realizing these clients may just decide to pay the difference out of pocket for this home if the bank will not give them the money for the purchase, or do I offer them market price of $200K as I am a cash buyer? These other buyers offered $210K but with a contingency, I am assuming for financing. I don't want to lose this sale, but do not want to overpay for the property. I would appreciate any and all of your thoughts. I am new to this short sale process and don't know how to think about this one. Thank you!