Short sale thoughts?

[shinysparklybubbles]

Is anyone on here by chance in real estate? We are looking at putting an offer in on a short sale and we are having a difference of opinion with each other. My agent says we need to put our best offer out (asking price with closing cost or 2,000 under asking with closing cost) I agree with her but my husband wants to offer $15,000 less and wants closing costs. The house is already listed almost $40 ,000 under market value. I don't want to low ball them and then have to play the back and forth game with the bank since it will take a long time for answers, but I also do not want to pay more than I need to!

I should probably add we live with my parents (sold our condo quicker than we thought and haven't found "the house" yet) so we don't have anything to sell so we can deal with waiting longer but I would like to get into a house sooner than later.

Thoughts anyone?

 

[golfgal]

I think what your real estate agent is concerned with is in a short sale it is the bank that has to accept your offer, not the seller, and if it is already marked down $40K there is a good chance the bank will reject the offer. There really isn't any negotiating with the banks. If you are ok losing the house, offer $15K under and see what they say. If you absolutely want the house, listen to your RE agent.

 

[The Mystery Machine]

I would lowball and go back and forth. No way I am giving asking price unless it was WAY under valued.

How much is the house? Is this 40,000 off a 120,000 house to make it and 80,000 offer? Or are we talking a house in a higher price range?

Not a real estate agent just someone on my 4th house. I recently bought in 2008 so had to buy in this weird market and frankly I don't trust anyone these days. Shoot we lowballed this house. They had it TOTALLY inflated and it was joke that they could sit their and believe that their market price was "correct".

If we would have done asking we would be upside down already in this house.

 

[shinysparklybubbles]

House is listed at $200,000. Comparable ones are on the market for 242,000 ish.

 

[The Mystery Machine]

House is listed at $200,000. Comparable ones are on the market for 242,000 ish.

What are they selling at recently within the last 3 months? Those are the numbers you need to look at, not the "on the market" sale price.

 

[shinysparklybubbles]

That's what I mean comps have sold at 236,000-242,000. I should have been more clear.

 

[okeydokey]

At 15,000 less on a house already priced 40,000 below market value, there may not be any back and forth. Someone else will offer closer to the asking price and they will get the house instead of you.

 

[The Mystery Machine]

That's what I mean comps have sold at 236,000-242,000. I should have been more clear.

How recent and how close to you? Same street within the last 6 months?

I hate to beat this to death but sometimes they REALLY reach for those comps.

 

[ccgirl]

Realtor here. You are negotiating with a bank, not a person. A lower offer means a longer negotiation time or no response at all. Banks want to recoup what they had to purchase the mortgage back for; not make a ton of money. It sounds like it is already priced well below market value. Sure, you could try to offer $15,000 under. Just keep in mind that they will probably take longer to negotiate with you and if another offer comes in that is higher they won't counter offer yours. Banks don't like getting in bidding wars. The question you have to ask yourself is how much do you like this house? In the grand scheme of things, $15,000 more for the total price isn't really that much more monthly. Is it worth losing hte house over?

 

[shinysparklybubbles]

How recent and how close to you? Same street within the last 6 months?

I hate to beat this to death but sometimes they REALLY reach for those comps.

same street and the 2 next to it. This is from my RE

"Pending 14 homes average asking $258,575 and settled in the last 2 months settled 10 average settled $246,020. So this home is far below market already."

 

[shinysparklybubbles]

Thank you for everyone's input so far! I appreaciate it and hopefully will help explain things to my husband, if not, I'll just cry, that should work

 

[The Mystery Machine]

same street and the 2 next to it. This is from my RE

"Pending 14 homes average asking $258,575 and settled in the last 2 months settled 10 average settled $246,020. So this home is far below market already."

That is pretty darn good.

So now, are the owners upside down on the loan I suppose and that is why they have to do the short sale?

How is the bank able to short sale this house that low if the market is good in your area?

How long has the house been sitting?

 

[Bren's Mom]

same street and the 2 next to it. This is from my RE

"Pending 14 homes average asking $258,575 and settled in the last 2 months settled 10 average settled $246,020. So this home is far below market already."

I would not accept the 2nd statement. I would ask to see the printouts for the 'best' 5 or 6 comps. Best meaning the closests ones to the short sale home with the closest floor plan/sq footage/lot type and size/condition.

 

[golfgal]

I would not accept the 2nd statement. I would ask to see the printouts for the 'best' 5 or 6 comps. Best meaning the closests ones to the short sale home with the closest floor plan/sq footage/lot type and size/condition.

Quite honestly, comps don't mean anything in a short sale situation-you are pretty much at the mercy of the bank and what THEY think is reasonable based on what the previous owners own and how much they are willing to eat on that mortgage. The bank will come up with their own comps.

 

[okeydokey]

There really isn't a whole lot of negotiating on a short sale. If you want the house, I wouldn't play around.

 

[shinysparklybubbles]

I would not accept the 2nd statement. I would ask to see the printouts for the 'best' 5 or 6 comps. Best meaning the closests ones to the short sale home with the closest floor plan/sq footage/lot type and size/condition.

We do have the comps to compare.

 

[Bren's Mom]

Quite honestly, comps don't mean anything in a short sale situation-you are pretty much at the mercy of the bank and what THEY think is reasonable based on what the previous owners own and how much they are willing to eat on that mortgage. The bank will come up with their own comps.

And that's fine, but the comps DO (or should) mean something to the BUYER.

There really isn't a whole lot of negotiating on a short sale. If you want the house, I wouldn't play around.

But you should also ALWAYS be mindful of the true market value of the property you are buying. A 'short sale' does NOT automatically mean 'bargain'...sometimes it's anything but.

We do have the comps to compare.

Good.

 

[shinysparklybubbles]

And that's fine, but the comps DO (or should) mean something to the BUYER.



But you should also ALWAYS be mindful of the true market value of the property you are buying. A 'short sale' does NOT automatically mean 'bargain'...sometimes it's anything but.



Good.

That is what I was just explaing to my husband. You are already getting a deal in he case of this house even paying asking price.