Foreclosure in Wellington>Question Details

Ron, Home Buyer in Wellington, FL

I'm working on purchasing a short sale in Wellington Florida and the original offer was 110K. The bank has come back with a counter offer of

Asked by Ron, Wellington, FL Sat Apr 10, 2010

125K. If I counter offer 120K can I make part of that offer that the bank cover all or part of the closing costs?

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13
Hey Ron,

What happened? I see this was posted back in 2010. I'm sure that property is worth significantly more today.

All the best,
Alma
0 votes Thank Flag Link Tue Sep 10, 2013
It's always worth asking, unless the property is a great value at the banks counter. Never trip over pennies in the pursuit of dollars. Many times banks want WELL over appraised value to satisfy a short sale. If the deal is right, act accordingly.
0 votes Thank Flag Link Tue Sep 10, 2013
It may not be a good idea to gamble 5k if you are really interested on buying that property. The $125k is probably the minimum the bank can accept based on the BPO minus the costs. The figures have to meet the minimum requirement they have.

Charita King
562-276-8681
0 votes Thank Flag Link Sun Apr 11, 2010
You can always ask for whatever you want in your counter, but the bank has no obligation to accept the offer. You might be better off waiting for the tax credit to expire and letting the market bottom out. If you're not in a hurry, you can wait the bank out.
0 votes Thank Flag Link Sun Apr 11, 2010
Ron,

You are in the middle of negotiations and will have to decide what you are willing to pay for the property. You can accept their counter offer or you may re-counter them which would make their counter null and void. You should work with your agent to carefully look at recent comparable sales and determine the fair market value of the home. If you used a standard Florida Short Sale Addendum and did not make any changes to the terms the Seller is free to submit other offers so if their are other interested buyers you may end up not closing on the property.

Another consideration is your loan; if it is an FHA the contract will be contingent on the home appraising for the full purchase price which is another benefit to you as the bank will probably reduce the sales price accordingly. Finally, remember if you qualify for the tax credit you have exactly 20 days left to firm up a contract.

There are some tremendous opportunities currently in Wellington and homes are selling quickly so best of luck! If I can answer any other questions you have please feel free to contact me at your convenience.

Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
Web Reference: http://www.tompriester.com
0 votes Thank Flag Link Sat Apr 10, 2010
Hi Ron,

You can counteroffer what you want but the Seller should also agree to your counter.

With the impending deadline of the first time homebuyer $8k credit, properties that can actually go under contract before April 30th and close by June 30th are sell "above" market value.

Some listing agents are recommending to their Seller to not try a counter but will merely give you a take or leave it $125k and no closing costs. Then the listing agent can flip the property back to "active" status and the first buyer willing ot pay $125k will get it. With the strong demand right now, you may lose the house to another buyer. If you're hoping to get the $8k FTHB money then you may want to see what else is available before you "pass" on this house.

Good luck
0 votes Thank Flag Link Sat Apr 10, 2010
Dear Home Buyer,
If u state adding your clossing cost into the short sale offer, u will increase the offer price & the 99% chance is that the bank will keep all increased price. Your negotiator should have told you this.
Let the bank pay all the sellers cost & you pay all your clossing cost.
Good Luck, BUYING
http://www.goforshortsale.com
718-775-7557
0 votes Thank Flag Link Sat Apr 10, 2010
Have you reviewed data about recently closed similar properties in the immediate area--if so does the data suggest that the lender's counter offer is fair--if it is fair, how badly do you want this property; are you willing to take a chance and possibly lose it over $5,000--there is a good chance the lender may decline anything less than the counter--unfortunately, a decision only you can make.
0 votes Thank Flag Link Sat Apr 10, 2010
Ron, In a short sale transaction- The lender usually covers the closing costs for the Seller. The buyer pays their own- which are far less than the Seller's costs. Whatever your terms were of your original offer ususally stay the same. It is difficult to negotiate Sellers' concessions towards your closing costs but not impossible, if you have the right negotiator.

Marsha Montoya Mayer- Realtor
Paradise Properties of Florida, Inc.
Email: marsha@mypalmbeachrealty.com website: http://www.palmbeachdeal.com
Cell: 561-329-0428
0 votes Thank Flag Link Sat Apr 10, 2010
I would not recommend changing the rules after the game has begun. If you wanted closing costs in the deal, it should have been part of the original offer. Negotiate price from here on out. Remember, the seller also has to approve the transaction. Are there any conditions on them that might effect the deal.

Consult your agent, they should be guiding you.

Craig fialkowski gri,cdpe
5618271790
0 votes Thank Flag Link Sat Apr 10, 2010
Ron, What is the market value of the property?

Bet you it is 125K - and if so- NO if the bank feels (and they get BPO's to fix value)
the property value is 125K that is what they are trying to get -

Think about it on the flipside - if you owned a home whos value is 125,000 in current market
would you sell it at 120,000 and pay closing, when you can sell it at 125,000 and not pay closing?

John
0 votes Thank Flag Link Sat Apr 10, 2010
Ron,
If you are wanting the bank to pay a % of your closing costs you are better off accepting their counter offer and just asking for that. For example, if you ask for 3% Seller concessions in closing costs and prepaids, that would amount to $3750 deduct that from $125k and they are actually getting $121,250 for the house. Talk to your lender and see the difference in your monthly payments if you go up the $15K to give them what they want. It should be very minimal. Usually the banks have a # that they need to be at to get the net that they want while still trying to keep the sale of the house in the range of where the market is at the time. Hope this helps!
0 votes Thank Flag Link Sat Apr 10, 2010
Yes. The may not accept your counter offer with the closing cost contribution, but you're certainly entitled to ask. My experience with short sale and closing cost credit tells me that most banks will not provide a closing cost credit to a buyer for more than 3% of the purchase price.

Take care and good luck...

Paul Morris
Gracious Homes Realty, Inc.
561-685-9457
SoldByMorris@aol.com
http://www.GraciousHomesRealty.com
0 votes Thank Flag Link Sat Apr 10, 2010
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