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- Reduce offer on short sale with recent lower ...
Reduce offer on short sale with recent lower comps?
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ktg_1
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One week after our offer we learned that an upgraded end-unit 3/3.5 non-short sale (yes,regular arms-length transaction!) closed for $300k. That house has wraparound balconies and a lot more windows but is otherwise very similar to the one that we are hoping to purchase. Two weeks after our offer, a smaller 3/2.5 in the community sold for $200k. If we were to use the lower recent sale price for a $/sqft comparison, the house we're offering for should only be $225k. There are 2 more short sales of the 3/2.5 floor plan available in the community and they have both dropped their asking prices to $225k.
The 45 day period in our contract is up this weekend and we are wondering whether it would make sense to submit a lower offer based on the idea that the $200k comp appears to be the trend of prices in the area, not an outlier. We don't want to derail the process, since it is possible that a bank appraisal will come back lower than our offer, but the arms-length transaction at $300k makes it possible that an appraisal would be higher instead of lower. There are only those 3 transactions in the past 6 months in this particular community, and neighboring communities range in asking prices from $140k-$450k and really don't provide good comps because there have only been a few of short sales and foreclosures in the past 6 months and no other sales.
Thanks for any advice.
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