95% (buyer's price opinion) is a nice place to start, but by no means is that always the case. Many times, banks have to accept much less. The short sale process saves banks 10's of thousands of dollar and if the negotiation is done correctly, the banks will take a strong offer... and that is relative.

95% of the BPO, with few to no contigencies, should get the job done.

Ida, The common offer is at bootom end of the price range or below range. If it is a desireable short sale - "lots of offers" put in a strong offer or someone else will get it. Be patient on short sales they can take quite some time. If you need more help visit our site.

Ida, your agent needs to run the comps for the house that you are interested in. Sometimes agents will put a list price on the MLS that they should know a bank will not accept.

The bank will have at least one BPO (Broker Price Opinion) done before they sign off on the sales price of the house.

There really isn't a hard and fast rule for making an offer on a short sale as far as percentages go. The important thing is to study the comps, make a "reasonable" offer, and make sure your agent follows up on a regular basis with the listing agent.

Good luck - I hope you get your dream home!

Dot Chance
The Chance Team
Keller Williams Realty http://www.DotChance.blogspot.com

Ida:

Per my experience, and I specialize in short sales, banks are looking for 85 - 90% of current fair market value. They always say that in addition to this they will take the amount owed to them into consideration. And some banks are willing to take the home all the way through the foreclosure process, end up owning the home, and then have to sell it for a price lower than some of the short sale offers they received (go figure how that benefits anyone, I can't).

The "current fair market valuer" is set by a BPO (broker's price opinion) ordered by the lender. My practice, as a listing agent on short sales, is to provide the person doing the BPO with all the reasons why the offer I have in hand for this home is a great offer and why they should not over value the property. I give them sales, foreclosure, REO, crime, school, local business and transportation statistics for the area. I offer any assistance I can provide in making their life easier. This usually results in a favorable report.

At this time, as the buyer, your best chance is to have your Realtor speak with the listing agent and find out what the bank's bottom line is on the deal. Check how close the auction date is (assuming the home is in the foreclosure process). Find out what kind of other offers have come in. Find out what the listing agent is doing to promote your offer. Unfortunately, all the power and negotiating skills must lie with the listing agent and some of them have never done a short sale before.

Hang in there. Remember, make your purchase offer based on good market information. The number of successful short sales is still pretty low. The home may re-appear as an REO after the auction date. There are lots of homes on the market and plenty more entering the pipeline every day.

And, if this is the home of your dreams and you plan to live there for a long time, you might consider offerring more, after all, you are buying YOUR HOME, not an investment. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty

Dear Ida,
The list price on a short sale is not an indicator of value. The list price in most cases has not been approved by the bank when the house is listed. Your real estate agent should give you a analysis which will indicate what the houses have been selling for around the vicinity, to give you an idea of current value. No matter whether you buy a short sale, a standard resale or bank owned, you can't control what the future holds as far as price dropping. If you are hesistate due to uncertain times then you need to decide whether you like the house or not. Real Estate always goes through cycles.
So, the bank has responded with a counter, you need to decide based on fact like recent sales etc..if it an accurate price, which your realtor should assist you with. Are there other offers?

In closing there is no magic percentage or common offer on short sales. Some short sale list prices are so far below reality that they are misleading to buyers because the list price is not even close to what the bank would even entertain. The key is to know the surrounding area and what the recent sales have been. Your realtor should be able to assist you with that.
I hope this answers your question. If you do not have a realtor representing you, you should get one. It does not cost you the buyer anything and it allows you to get fully informed.
Good Luck
Alison Bell