As I expected, the lender rejected our intitial offer of $205,000, saying "[we] would have to come up badly.". I would have really been flabbergasted if they accepted it. I did some research and found the deed was in 1998 with a 1st of $174,400. I did not find any other records, so I'm assuming the loan was never refinanced, transferred, etc. This would make the balance around $161,000 today. Add to that the $20,000 in upgrades the lender made and carrying costs, and the "break even" price would be around $190k-$195k. Anything above that would be extra money for the lender. My agent emailed the listing agent a short followup stating that prices of comparable homes in the same area are averaging $76.50/SF, which would make the comp price about $233k. She also mentioned there was a bigger home up the street going for $75/SF, so she couldn't understand the lender wanting $250k for it - and neither can I, especially knowing that it still needs $10k-$20k in repairs and has some eyesores in the backyard.
I told my agent I would talk it over more with my wife, who, by the way, just told me this morning that she is having second thoughts on it, and I would get back with her (my agent) as soon as I could with an answer.
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