I am in the process of purchasing my first home. I was preapproved for a loan from BOA for 100K. I found a BEAUTIFUL foreclosure condo reduced recently to $58K. The HOA fees are $155, and the market value of the property was $250K in 2010. The property is well maintained, move-in ready, and there are other occupants in the building.
I made an offer of $59K with $2000 earnest money yesterday. Today I received a notice of multiple offers. I REALLY REALLY want this condo. My real estate agent said that it was last listed at $137K, and they drastically reduced the price, most likely to get a bunch of offers. My question is- what should I put as my FINAL and BEST offer?? I can afford to put in the whole $100K, but I'm not too comfortable doing so.
Has you realtor pulled comps?
Yes. Pulled comps up to $105K- nothing compares to this place!
I'd say go to your comfort limit and stop. Accept that there will be another place if you don't get this one. Try to breathe for the next few days.
I put in an offer on a house listed at 99k in December. It was worth that amount to me, but the comps didn't really justify it. I looked at the comps and came to the conclusion that really, it was worth 60-80k, and that there was justification for going as low as 55k. I offered 63k. They countered at 89k. I countered at 72k. They refused, saying that we were too far apart. I decided to let them sit with that - my offers were both really fair, and they've been trying to sell that house for more than a year (AND they paid 32k for it in 2008 AND they owed 11k in back taxes on it AND I was going to have to do some work like removing the oil tank from the basement...) While I was waiting for that rejection, I calmed myself by going over all of the houses on the market and figuring out what I might want to see. I found 17 of them and prioritized 6. When I met my realtor to see those, I told him I didn't want to look at ANYTHING. I ended up liking 3 of those 6 (and one more I saw that week) enough to have to decide between them. I was making up my mind when a beautiful house came on the market....one that I'm now under contract for that at least 2 other people wanted. I put in my highest and best (5k over list) initially because I knew that there had been an offer and I had no doubt there'd be more. You need to make that "highest and best" decision without feeling that there won't be another house. There will be another house if this one doesn't work out. The house I'm under contract for is much better than the one I "lost".