Of course not. They are like any other seller and have to weigh their options and decide how much of a loss to take. You should be offering 20% below on all of the asking prices to make sure that you do the best for yourself and money you've worked har to earn.

Wed Jul 9 2008, 14:37

I am a listing agent who has closed several short sales and foreclosures in the last few months. All prices are negotiable, make an offer, but make a reasonable offer, don't think that your client is going to buy a house for 70% on the dollar. The listing agent has to watch out for their clients best interest as well. What you could do is do a mock BPO and see what figures you come up with and submit an offer based on those figures.

Regarding commissions, most bank will not pay over 5% for two agents and as low as 2% for dual agents (this is being challenged in Virginia, but that is an entirely different topic. And in some cases will come back with a ridiculous 4%, fight that one. Each of you deserve more than that for having to deal with the "long" short sale.

As far as closing cost (and I am going to throw in down payment assistance programs)-Closing Cost are usually paid by the bank and up until recently so was some down payment assistance. If your client needs down payment assistance. You are not going to get both and it will be a waste of time for everyone.

Hope this helps.

Vangie

Tue Jul 8 2008, 23:28

Banks are in the business of making loans and opening accounts, not owning real estate and acting as property managers. So the list price is a starting point for negotiations, but there are several things to consider: 1) How long has it been listed 2) How much competion is there to the property 3) What is the condition of the property?

Generally the longer it has been on the market, the more competition there is, and the worse the condition, the more willing a bank is to negotiate. An agent in my office had a REO listing where the foreclosed owners took the cabinetry, granite counters, toilets, and cut out large sections of the wall to wall carpeting before fleeing into the night. After 90+ days with a place that showed liked it had been robbed, the lender got very flexible on price and ultimately sold the property.

Those listings that are in the multiple listing system for Northern Virginia include an offer of compensation to the agent that brings the buyer, so that will be paid for by the seller.

Beware the dreaded Bank Addendum! They vary from bank to bank and often will transfer fees that are normally paid for by the seller over to the buyer such as the; Grantors Tax ($1 per $1000) or the cost of HOA or condo documents, etc. Often, trying to get the addendum prior to making an offer is impossible. I've never heard of a property in this area where the bank was willing to cover your closing costs, so I wouldn't count on it.

One final thing, these properties are sold "As-Is", so you may want to have the home inspection done prior to making an offer, as you generally won't be able to change the price after the offer is ratified.

Tue Jun 10 2008, 13:07

First you have to know what's owed on the property. Usually not the list price. Takes some research to find out whats owed.

On average they will accept 80%-85% on the low side. If the property needs work you might try a "fix-up" loan program that is FHA backed. The minimum is $5K in repairs. That might replace some flooring and paint.

www.realestatetyps.com

Thu May 15 2008, 09:35

James,

I'm a mortgage professional and not a realtor. But I have done loans for clients who have bought bank owned properties. In one particular case the bank accepted a lower offer and was willing to pay closing costs as well. Remember in real estate everything is negotiable. The seller which in this case is the bank 99% of the time pays the commision to the realtors unless its a FSBO by the bank. As mentioned below keep in mind if someone else also puts in an offer you could loose the house due to lower purchase price or even asking for closing costs. If you need assistance with your mortgage please feel free to contact me. Thank you and good luck

Fri May 9 2008, 07:38

No, you can make offers but keep in mind others might also be making offers. In addition, sometimes it takes weeks until they tell you if they have accepted your offer. Usually the seller, in this case the bank pays the commissions to the agents involved. I have seen them pay some closing costs but I'm not sure if that's common.

Thu May 8 2008, 19:41