patrick.net

Wishful thinking from the bank?

"Houses were selling for closer to $250k" Why don't you get one for 250K and why you want to pay 300K for that? Is there any specific reason?

Not too many houses arebubblesitter says

“Houses were selling for closer to $250k” Why don’t you get one for 250K and why you want to pay 300K for that? Is there any specific reason?

Not many houses in that neighborhood are for sale to begin with, just a few. We like the house and this one has been improved. Nothing super fancy, but improved so we don't have to do it. Simple 3/2 ranch built in 1974.

That's the whole point, we won't pay $300k for it, that is why we offered less. Just wanted to give it one more try since the short sale was a no-go.

The truth is that most houses in Vacaville have not been improved much, they are mostly OE and need improvement. So we are taking our time and being a little picky which is why we were willing to pay a little more for this place. $275 is pretty much our ceiling, even though we can afford more we don't want it to be a stretch.

That way the banks get to show the Gubbermint auditors "See they just don't want these beat up old houses" as they sell them to their straw companies for pennies on your rejected offer.

robertoaribas says

banks generally get on a pretty regular price reduction routine, if the home doesn’t sell in a month or two. They WILL find the market price.

The REO's in the area I'm living at now will reduce prices only so much before they withdraw it from the market. It comes back 8+ months later as a new listing, with the original price before any reductions.

No way. We are not playing games with the bank. We walked after they gave us a form that indicated multiple offers and they wanted us to bid up our offer. The wife agreed too, we set our highest price for the place and stuck to our guns.

Lucky for us, the very same day we found another house and made an offer. Life goes on.

Nobody answered the original question: "Why are they asking so much more on this house when it’s valued at so much less, and houses in the area are not selling for this much? Is it just wishful thinking on their part?"

The answer is that you made a bid close to the asking price even though you said it was too high. So you, yourself, set the "market price" The bank sees multiple offers at 90% of value so they think their pricing is valid. And they're right.

"That’s the whole point, we won’t pay $300k for it, that is why we offered less. Just wanted to give it one more try since the short sale was a no-go."

I don't see what the big difference is between $270 and $300K. Yes, 30G's is a lot of money, but only about 10% of the price. If you like the house that much, then bid full price and demand a 24 hour yes/no response.

Otherwise, if you refuse to pay that much then be prepared to wait a while and if you're prepared to wait a while, why not go all the way? Why not get a rental for a year or two and wait for prices to fall down to $250K asking? Or even less?

PolishKnight says

Otherwise, if you refuse to pay that much then be prepared to wait a while and if you’re prepared to wait a while, why not go all the way? Why not get a rental for a year or two and wait for prices to fall down to $250K asking? Or even less?

WOW, everyone must be calling and emailing you to get your opinion since you have such a clear crystal ball. Only you can see the future and know for sure that the price will fall to 250K or less.

a4adam, I can understand why you were hanging on that specific house. And it's good to hear that you found another house worth buying.

Regarding for that upgrade thingy, some people do upgrade right before putting their home in the market, hoping to lure some buyers. It often is kitchen remodeling with cheap chineses stuffs and some other costmetic makeups like new paint on top of mold infested wall. We're looking for home too. We're going to openhouses from time to time, and that exactly is what we're seeing in some homes. All about cosmetic makeups, not about critical renovations. So, pelase don't fall for the look and check hard if whatever upgrade w/ the home you were seeing is worth paying for.

vain says

robertoaribas says

banks generally get on a pretty regular price reduction routine, if the home doesn’t sell in a month or two. They WILL find the market price.

The REO’s in the area I’m living at now will reduce prices only so much before they withdraw it from the market. It comes back 8+ months later as a new listing, with the original price before any reductions.

Denial.

seaside says

So, pelase don’t fall for the look and check hard if whatever upgrade w/ the home you were seeing is worth paying for.

I hear you. We saw one house that was a disaster, dressed up to look nice. Still waiting to hear on the final but we accepted the seller's counter yesterday. Of course, we're doing full inspections and I will be there for all the inspections.

We accepted a slightly higher price because the house was move-in ready and it had nice things like a new roof (concrete tile), all new double pain vinyl windows (not the cheap ones either), new kitchen (all new) and lots of other smaller upgrades. The bottom line is we don't have to sink our life savings into the house, we can pay the mortgage on one salary, and it's in line with rents in the area and what we are paying for rent now. All that and the house is in a nice neighborhood too.

The thing I learned is even with all that has happened, the banks are still engaging in monkey business. At least that was my impression dealing with them on the short sale and then the REO.

Sometimes you just have to take a step back, it's so easy to get lost in the particulars.