Fri 20 Jun 2008
Remember how I was stuck between my original favorite house, and the 2nd house we visited after we put an offer down on the 1st house? Well, I think admittedly both me and Mr. W prefer the 2nd house, despite the 1st house having its definite advantages of the beautiful yard and full bed/bath downstairs. So we offered $560K for the 1st house, and they took it. Now that this house is $20K less than the 2nd house, after I told Mr. W the “good news” about them simply accepting our price offer without countering it, instead of being excited, he cussed. Cuz he was hoping they’d counter with something unreasonable that would justify our going to the 2nd house, which he prefers.
At his insistence, I called my realtor this afternoon to request that he check the status of the 2nd house. Does the bank on that short sale really mean it when it said that a full-price offer of $580K would be accepted and move it immediately into Escrow? I was hoping for a clearer sign that we’re meant to take the 1st house, like maybe the 2nd house is no longer available. Then we’d know that the sellers simply accepting our lowball bid is “the” sign.
Well, the 2nd house wasn’t taken off the market. Instead, at noon, the bank REDUCED their asking price from $580K to $555K! The 2nd house is now CHEAPER than the 1st house! Mr. W was floored. Since this is such recent developments, the online realty website doesn’t even reflect the price reduction yet. Our realtor called that seller’s agent, and was told that not only did the bank just approve the price drop today at noon, but if the buyers aren’t picky about wanting modifications done on the house or wanting the sellers to pitch in on closing costs, they were willing to let the house go down another $5K and yes, move immediately into Escrow. The 2nd house is now $550K, or $10K less than the 1st favorite house.
Our agent immediately typed up the offer for the 2nd house and faxed it to me at work. Mr. W came by my courtroom after work, we both initialed and signed off on the offer, and faxed it back to my agent, who sent it back to the selling agent. We’re excited, but I feel SO BAD for the owners of the 1st favorite house, whose beautiful house sits vacant and unwanted without offers, such that they were even good enough to take our lowball offer w/o countering on price, and now they’re gonna be left out in the cold again. They probably thought it was a sure thing because of how fast and definitively they accepted our offer, and were sighing and celebrating in relief. 🙁 Our agent said he’ll handle it with finesse. They’ll probably call him this weekend to ask what’s going on with their counter, and he’ll let them know that we had an offer pending on a short sale (which is true enough) which just suddenly came through.
I still feel soooooo bad. Anyone want a beautiful 3 bed, 3 bath house in Mission Viejo to be our neighbors for $560K?
The bank-owned REOs and Shortsales these days IS the real-estate market. I wouldn’t feel bad for dropping the first house — that is how the market is today. Banks drop their price regularly until the house sells to chase the market. Any individual seller has to do the same to keep up but usually are unwilling. I have to say I am not surprised at all that the bank dropped the price that much. They will continue to do that for quite some time.
If you look at the link I posted, banks took back 5,000 more homes this month than they sold so their inventory is piling up.
They have no choice but to discount heavily to try and move them. IMO the Bank REOs and Shorts are where the best deals are at today, though probably are still 20% overpriced unless you are lucky to find a great deal.
I’m curious though — can you email me the addresses of the 2 properties? I’ve been poking around on redfin trying to play my own Realtor, and im curious what kinds of places a real Realtor is finding.
Don’t worry I won’t bid against you 🙂
i’m glad it all worked out!
James – I tried to look at the last link you gave and it didn’t load for some reason. But I did look at other videos by Mr. Mortgage. He talks generally about CA, and takes stats off median pricing. Mission Viejo is not one of those neighborhoods that median really refers to, and is more resistant to the huge fluctuations altho of course the overall trend does affect it somewhat. It’s just ilke how the beach homes don’t get drastic dips the way inland homes do.
Of course I can send you the 2 properties, I’ve sent them to other people to discuss them. And I wouldn’t be concerned of you bidding against me, NOT CUZ you can’t, cuz God knows you could take us out of a race in a second, but because I have faith that you LIKE me, goshdarnit.
anny – This is the property that you said you like the stairs better. 🙂