It is no wonder why so many banks are failing these days. They just do not seem to comprehend what is going on in the current real estate market. Here is a perfect example.
This property just came on the market for sale in the Moonridge area of Big Bear.
Listing price is $399,900, 3 bed, office, family room, & 2.5 baths. It needs roughly $15,000 to $25,000 in finishing details to complete it. The property is now bank owned.
A little history on this property. I had it for sale from April to August of this year, listed initially at $525,000 but reduced to $475,000 about 30 days after hitting the market. The property was a short sale as the owner owed $605,000 on the property.
We had a legitimate offer in mid July for $450,000, 20% down and a 30 day escrow. The bank did not even counter this offer. Their main objection to the offer was that they had an appraisal from January of this year in the upper $600,000’s.
I emailed them recent comps to show they were way off base but it was wasted effort on my part.
Now, just a couple months later, and after having to take the property back at a $605,000 price, plus the cost of foreclosing on the previous owner, they put the property back on the market yesterday for $399,900.
I am not trying to sound like I have sour grapes because I missed out on the sale. I just don’t understand how these banks make such financial decisions. Can someone please explain what I am missing?
This is not an isolated incident. I have seen it numerous times in the past year.
You hear all the news today about banks working with buyers & sellers but this is a perfect example of what is actually happening. They just do not get it. They are going to lose at least $50,000 from what they most likely would have received 3 months ago.
If you are looking to buy a home in Big Bear, this bank’s incompetence could be your gain.
****UPDATE*** The bank eventually sold this property on 12/26/2008 for $375,000. Like I said, the buyer’s gain.