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Just put a bid on a house...

October 5th, 2008 at 09:32 am

Oh boy. So bid is in. We will end up with this house if the following go well:

Sellers accept the contract
Bank approves the bid (this is a short sale)
House appraises for the bid amount
Home inspection goes well

Yuck.

There are no real comparables for this house. Fully remodeled, it would go for a lot more (add another 100k+ even in a down market and they go in less than 5 days at that price). Big issue, its not remodeled. It needs lots of work. It also has a basement and the cheaper homes in the area do not. So our Realtor isn't sure it will appraise high enough. Not that she thinks it will appraise low, she just doesn't know what they will appraise it for since this neighborhood doesn't sell homes very frequently.

Bank approval of the short sale should go well, the other agent just had a contract fail at that number due to down payment assistance disappearing as of Oct 1. Incidentally that's why we made the offer there. It is a discount of 8k and if it doesn't appraise there, it will quicker to have an appraisal come back too low then to have the bank reject our first offer and then go through the whole process anyways.

I am really not too worried about the home inspection. This house is valued so low and has so much potential that its a steal even in this market. But the missing water heater will need to make it back there before inspection. This was a rent to family while we buy a new house deal that went very wrong. On a positive note, that means that the sellers are in a better position to help out and the utilities aren't way behind as a result.

Wow. This is going to be a major project. But definitely worth it if we can manage to get the deal to go through...

3 Responses to “Just put a bid on a house...”

  1. gamecock43 Says:

    congrats! Such fun! and exciting times for you!

  2. Cindy Says:

    Good luck! Hope the bank doesn't drag it out. By the way - have you seen the movie The Money Pit? If not, you should. Another oldie but goodie is Mr. Blandings Builds His Dream House.

    I bought my fixer last October. It's a work in progress, and I'm sure it will keep us busy for years to come. I promised myself when we sold our last "fixer" I wasn't going to go through that again, but I'm a glutton for punishment and just can't stay away from a bargain or challenge.

    I have some cheap home improvement tips on my blog if your interested. Hope all goes well and your in your new home by the holidays!

  3. Caoineag Says:

    Thanks! I will have to check out your blog. Part of the reason we are going so cheap is because I am well aware that houses require repairs and come with big expenses. Even with this being a fixer upper, we won't have any trouble saving up money. I actually like remodeling (did it in my father's house) so it will be fun. The big issue here is that short sales fall through all the time...

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