My suggestion if you are looking to purchase a home within a month don't waste your time on "Short Sales" to look for your "Great Deal". I think you should look at Bank Owned homes that have been on the market a while and pick out your favorite 3-5 and make very aggressive offers on them. Know what the maximum you would be willing to pay for each home i.e. asking price is $245,000 you make an offer of $200,000, and you know the most you are willing to pay is $225,000 for this home, then you have some room when and if the bank comes back with a counter offer. Also I have found when making these aggressive offers for my Clients that if your Agent keeps in contact with the Listing Agent and is friendly with them they will go to work for you with the bank as well. When the price is getting close to the maximum you are willing to pay your Agent could put "Best and Final Offer" on the your Counter Offer which I have found carries a lot of weight with the banks. Don't make your first or even 3rd offer anywhere near what you are willing to pay for the property because the bank wants to and will counter you on price unless you make a full price offer. I hope you get the home you really want at the best price you can get. Be prepared for multiple counter offers, I have done as many as 9 Counter Offers to get my Client the price he wanted on the home he wanted and it worked he got it. Good Luck!!!

Thank you this has been very informative. Yes, I read that thread yesterday, Patrick, and it was very helpful. In fact I will pretty much submit my offer and then just keep looking since in all liklihood I will have a long wait and it may not be responded to at all. Also, I want to find a home within a month, although I'm not really pushed for time.

Hello T. V.
Here is a thread worth reading
http://www.trulia.com/voices/Home_Buying/I_am_about_to_put_a…
I am not a fan of Short sales. I have found that once the bank answers you ( 90 days ) it is no longer a good deal.

If you are going to buy a short sale you need a Realtor who knows the ropes.

As far as playing Loud music? that is just unprofessional.

Hi Again,

In answer to your question regarding your intended offer it doesn't really matter what we think about the offer you wish to present it really matters what you think of the offer. If the property is a short sale then the offer you make, assuming that the owner's of the home were willing to accept it, would be in the hands of the lenders.

(Oh, and just an FYI, the seller's are well within their rights to take their stove assuming that it is not a built-in appliance. As for the garage door opener, if it was removed before the property was listed - even if you see evidence that it was there before that's fair. Of course if you are successful in your bid to purchase this home then the amount you save on the purchase should more than offset the replacement cost of the stove and opener.)

The lender might be willing to counter if they want more than that for the property. But if they believe that they could get more for the property by waiting for another offer or taking the property back and selling it as an REO then there is a very real possibility that they would reject your offer and the game would be over.

One of the documents you should sign when you place your offer is the PAA (Purchase Agreement Addendum), specifically Section 5 which spells out the rules in effect when the property is a short sale, basically it says that you understand that the lender may continue to recieve other offers until they choose the one that they wish to accept, but that they don't have to accept any offer. I am paraphrasing here but that is the gist of it.

I am glad to hear that you are working with a Realtor you like. As a first time buyer, or a fortyfirst time buyer, working with a Realtor is always a good idea. I am also glad to hear that he has you set up on an auto-prospecting system as this allows you to see what is available that might meet your needs.

Don't lose heart or patience as the offer you make on the property may not receive any kind of a response for a month or two. But, if luck and the lender's are all on your side you could wind up getting a lovely home for a pretty good deal.

Good luck in your home purchase. You are quite right that there is a lot of choice in your area of interest.

Take care,

Tisza Major-Posner, Realtor, Keller Williams

Yes but I am more concerned about what you think about the price I offered. The house is in excellent condition but... it has a septic tank, the previous owners are taking the stove and removed the garage door opener. The carpet is fair and the neighborhood seems quiet, even at night. The way I feel about it, if I don't get this home there are thousands upon thousands of other homes that would be just as perfect for me in this buyers market.

Truliavistor - I agree with Patrick and Lisa's answers - you really need to know if the price is a bargain or a steal as you are negotiating - my experience with banks is that they rarely respond quickly and during that itme if a better offer comes in, they have no concerns about going with the higher offer (maybe without letting you have a chance to increase your offer)...this is even more so with a "short sale" as the bank will take longer to get back to you (the process is different) than with a true bank owned property. You will probably want to read some of the other posts about short sales but the bottom line is you better have a flexible housing arrangement because the bank will follow their time line on this one - they can be a good deal but you will need to have patience. I hope it works out for you.

In my humble opinion, you should be honest with the realtor, remember that he is working for you! I would very much appreciate it if my client would be politely honest, it can only make things better for everyone.

1) He may think he is breaking the ice or keeping it more comfortable for you by having on music (I don't usually play music but that's because I don't like music playing when I am in someone elses car if we are talking. Some of my clients may want music but aren't comfortable asking me to turn on light music....it goes both ways! ) Just ask if he doesn't mind if you can turn off the music or turn it down so you can concentrate or talk to him. He won't mind, I'm sure of it.

2) Keep in mind that he probably put you on an automated system (we have that on our MLS in Riverside County) so it just looks like he is doing it everyday but thats good. You are getting the listings at the same time the realtor is usually seeing them so that means he is doing his job by putting you on there!

3) Please don't try this on your own just make your intentions clear. He probably talks too much because he is nervous, especially if he has only sold 3 homes, he thinks he needs to make conversation. Just let him know that you "need to think" or keep him focused on the questions at hand so he stops with the "small talk " .
He is new to the business and you are new to the home buying, you can do this together but understand that you have to be patient with each other and most importantly, he works for you please do not put up with things that irritate you!!! This is supposed to be a fun, educating and exillerating purchase, you should be enjoying the experience.

Thank you for your answers! There are so many foreclosures in this area and the surrounding cities. I would be really worried if I was a seller. Fortunately, I do not have a home to sell. Today I visited the house. It was built in 2003, and is considered a "short sale." I asked my realtor to make an offer for $230. The asking price is $245. 2,000 spft. 7,840 lot size. He is really pushing me to pay the asking price and showed me some comps, but the sq ft he showed me was 13,00 and up and I pointed that out to him. He brushed it off. He is supposedly my agent. What I like about him is that he sends me home listings in the areas and price range I am looking for every day and answers any questions I have. He has access to information I do not have, like how long its been on the market, how many owners, whether it is a short sale, etc. What I don't like is that he talks A LOT and has only sold three homes, including the home my sister bought. And I hate the music he plays on the radio when we are driving around looking for homes. He plays it loud too many times. If it was played at a much lower volume, I wouldn't mind at all. If I was not a first time owner, I would probably try to do this on my own.

Whoa Trulavisitor! There has to be a reason your realtor is telling you to go with asking price, are there already several offers on it? or has it just hit the market and your realtor feels like it will be gone quick?

If one of those reason exist, follow your agents advice.

Otherwise, DO NOT offer the full asking price. We list bank owned properties too further south from you and they end up being listed higher then we (or the other 2 realtors that did BPO's) recommend. The lender must show the investors that they are attempting to get as much as possible for them so they go higher out of the gate and its our job to try and make it happen. If it doesn't, the price is generally lowered every 30 days if the market demands it. (We have to do a report to the bank every 30 days)

If you do offer a low ball, expect only a "nudge" off list price for your counter...they are trying to make a point :)
If you offer a reasonable offer, still expect a counter because it is their procedure to do so and besides, they need to get you the addendum that has some of their requirements to be included in the purchase (per diem charge if you don't close etc....) If the price on the counter offer isn't good for you, just counter again (this process is usually all verbal until you get to the addendum)

By the way, they all have a $50-100/day charge if you don't close on time but keep in mind, they will also ask for a 6o day close to give you plenty of time unless you force a quicker close. If you all close earlier, great; otherwise they build in the buffer for you so you have time.

I hope this helps, Good Luck !!!!!

Tisza is right...Who`s Realtor is it?

You need the new and improved CMA of the Neighborhood. I call it the post credit crunch CMA.

Are there other Short sales or Foreclosures that will eventually drag down the comps?
Are there a lot of sales in the last 18 to 30 months in the neighborhood. That maybe in trouble, because they bought the high, with a ARM Time bomb?

This is the time you need a Realtor experienced with REO`s, who knows the area working for you.

The bank will not get offended, they will just counter instead.
If you are a serious buyer, the bank wants to sell. They will keep the deal alive.

Find another agent that will work with you and your specific needs!

I always tells my clients to bid below the asking price. The seller has 3 choices to accept, reject or counter back. Most of the time they will counter in this market. You and the bank can counter back and forth to you come to the price you both agree on. Or you can walk away and wait to see if the house doesn't sell in a few month to come back and start again with this price. Sometimes banks lower their price if they can't get a buyer in a certain time.

Truliavisitor:
I have bought several foreclosures over the years. As a general rule, I have observed that the bank will counter the offer and the bank prices close to what they are willing to accept at the time. I have also observed that banks will systematically reduce their prices if the property is not selling.

If you are the only one bidding on the bank property, entering your negotiations with a reasonable offer below their ask price should get you a reasonable counter offer off their list. You may want to "test" their counter offer by shooting back a verbal counter somewhere between your entry offer and their 1st counter.
If they move or take your counter back, you can go from there; but if your counter back is within their guidelines, you will probably get that property at that price.

I always have my real estate agent advise me on what the foreclosure can be sold for after I fix it up and make all repairs. Sometimes I have sold right away, sometimes I put a tenant in and hold.

When a buyer makes an offer, unless it's ridiculous (like half or something and even so there may be times!), the bank needs to take it seriously and appreciate the offer--not be offended, especially since you are doing them a favor of liquidating property they don't want to own. You and your agent are looking out for your best interests, so offering lower makes sense and is expected. What percentage of asking price are properties going for? If they're selling for 95% of asking, offer 90% and bid back and forth expecting to go up from your offer to settle on 95%. You need to know the market. Check on what other foreclosures have sold for. Just because it is a foreclosure doesn't mean it's hit rock bottom yet. If you don't want to bicker, offer what you think it is worth and stay there, being ready to walk away. Regardless, an offer is just that, an offer; so make it one you feel you can live with.

I certainly wouldn't worry about offending the bank, the are simply looking at numbers to make a decision. I think your Realtor and yourself should do your homework to find property values in your area. Also have to consider property condition and time on market. I have spoken with and worked with a few lenders on this and they have price reduction schedule based on days on market.
Good luck and I hope you get a fair deal!!

Hi TruliaVisitor,

Just to clarify is the Realtor you refer to the one who is representing you or the one that is representing the home you are interested in purchasing? The answer to this question could answer the one you posed.

As for offending the bank... banks are banks and unlike "real people" they don't get offended. That is a good thing but the flip side of that coin is that they also don't have a sentimental side you can appeal to either and tend to look at the black and white of things not the grey.

In order to accurately answer your question I would need to know more about the home you are interested in so that I could do a CMA (Comparative Market Analysis) to help determine value. If you are not already under contract with another representative, I would be happy to help you out.

Take care,

Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922