Just spoke with an owner that he has been approved for a short sale. The seller tells me that the bank has apparised the home @ $525K and the bank has approved to short sale it for $449K. He says that he had a guy come down 2 weeks ago and this is what the bank agreed to. For whatever reason the guy walked from the deal.
I told the seller that is because their is not enough equity if I am buying the prop @ 86%. Then he goes on to tell me that he owns an acre of land right next to the home and got all the permits and had it subdivided and all that. I asked him what he thought the land was worth and he said probably around $250K.
I then asked him if he would call the bank's appraiser and get the land appraied as well. He said he would do this right away.
This sounds strange to me.....why in the 1st place would he only have the house appraised and not the land at the same time??? If I lock up this prop at the $449K, doesn't that mean I am buying the ENTIRE rights to not only the home but also the adjoining land???
I explained this to my realtor and he didn't know what to make of it but we agreed to go see it tomorrow afternoon (got nothing to lose).
Just wanted to hear back from anybody if they have dealt with this b4......home and adjacent 1 acre of land that has been subdivided to build 2 homes.
What am I missing here??? It sounds like a no brainer if the home is appraised at $525K and the land may come in at say $225K = $800K. I would then be able to buy at the bank approved amount (unless that can change) for the $449K, $56% FMV. He told me the house is all remodeled, is 2000 sf on top of a hill (360 degree view) in a fairly nice area of the east bay where I live.
Would appreciate your comments.