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Scottsdale home update

December 22nd, 2006 by Kenric

When the seller came back with a $370,000 counter and a short sale contingency.  I wrote an email to the realtor explaining why the counter did not make sense to me.  If we had to do a short sale anyway, why not start as low as possible and then come up?  The realtor said that the bank would not discuss a short sale until they had a signed contract.  So I said, why not submit a signed contract at $350,000?

The seller agreed.  When I got the new contract, it stated that the property would remain active during the short sale process and that if a better offer came in, I would have 48 hours to counter it, else my contract was voided.  I did not like this because I didn’t want to go through this whole process and have it pulled out from under me.  I also do not want to put a dime into inspections and appraisals until the short sale is approved.  However, the standard contract says I have 10 days to get an inspection done.

The realtor told me that there are currently 3 more offers on the property, but none are acceptable.  If I do the math correctly, there were 8 total offers on this property, including mine.  Mine must be the best one so far.  So I’m wondering if I’m paying too much for this property even at $350,000.  When I look at the comps, I think this home will be worth $450,000-$500,000 fixed up.  I think that it needs $50,000 of work.

As I think about this home more and more, I’m not as excited about buying it, even at $350,000.  In fact, I have my eye on another one, but it’s $620,000 and in worse shape than this one.  However, the other home is on a 1/2 acre lot and in a slightly better area.  This other home fixed up will be worth anywhere from $900,000 to $1.2M.

Tomorrow I may just call the realtor and tell her that I’m not interested in this home anymore.

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