This one seemed like a no-brainer. We had a contractor (a close friend) look at the partially built new-construction home. He said it was 30% completed. If completed, the home would FMV for about 100K. He suggested a foreclosure offer of 18K but, to start in the 10-12K range.
Right now, it has 10' weeds growing up in the home, only three exterior walls, and basically from the outside you can see straight thru to the other side because the fourth side is not closed. It is only a shell...nothing inside done at all.
The contractor said we could handle this.....he would do the difficult stuff and we do EVERYTHING we could possibly do ourselves. We even checked into ReStore for recycled cabinets and baths. So....again, we decided to go for it.
Now, this home has been sitting (rotting into the ground) since Feb 2008. This time, it has already been deeded back to the bank/REO. I called them and it is one of our small-local community banks. I spoke to the loss manager and he said it is available for sale and to make him an offer: I offered 12,500 as is.
He chuckled and said they would not consider any offer under 60K. What? It is a small lot with some concerete and wood. The house is 30% finished....it in not liveable. WTH?
He said: He will only take an offer OVER 60K, he has estimates from several contractors for "completion costs" and they are all in the 60K range .... he knows the property will appraise at 120K completed. Therefore, he will not consider anything under 60K and with the 60K completion cost ... the house would be at true value. He also said the bank will have the home completed if necessary and sell it themselves before they accept a lower offer.
This is nuts !!!!!!!!!!!
These foreclosures around here are just priced insane and NO ONE will even consider negotiating with us. We couldn't get a move in ready home and now .... we can't even get an offer accepted on a home with "see thru" walls.
~~~~~~ Praying for our dream house ~~~~~~