A short sale is where the house is being marketted for less than the lender is owed. Typically, the lender has not disclosed their bottom line, so agents can price it wherever they want to generate interest in the property. Nothing prevents an agent from listing a home with an actual value of $300,000 for $175,000. They may get offers for $175,000, the asking price, but the lender can reject or counter offer all of them. I literally saw an agent do that exact scenario. The only person to benefit was the agent because he was able to receive buyer inquiry calls on the home all day long. He was actually hoping the home never sold. Can you imagine how many calls he was getting???
My advice is to do your homework on the area and bid the price that you would be willing to buy the home for, regardless of the asking price.
Also, be prepared for an extended period of time between submitting the offer and getting a response.
Hope this helps.
With so many foreclosure properties on the market, unless you're in love with the location/floor plan or some other attribute that another home simply will not offer, you'll be working pretty hard and won't necessarily get a better deal on a Short Sale than you will just buying a foreclosure that's already through the courts.
Good luck to you! No matter what you choose to purchase, get your financing cleared before you begin the buying process on anything. Guidelines are much tighter now than they used to be.
Fair Market Value is determined by an agent (called a BPO agent) who might do a good job, or may just drive by and take a quick look. The banks don't pay very well for this service and often times the BPO agents are overloaded.
That all said, there are really no absolutes with Short Sales, so much depends upon the investor, the servicer, the bank's negotiator, and the skill of the agent/negotiator. What we continue to find is that short sales are a retail product, and many times investor offers are just too low.
NextGEN Real Estate Corp.
If want to get a great deal on home with out all the hassle, speak with an agent. There are about 50,000 homes for sale, and prices range significantly from area to area. There are new homes that are great deals as well. The choice is left to you, but unless you want have the time an patience to deal with the lender, I would suggest finding a home with out all the hassle.
Ulises Romo, REALTORÂ®
PRO-formance Realty Concepts
They need a good reason even with today's marketplace. Yes, they will all short sale, but if you want more than a 10% or 15% discount, you have to be able to back that up with a reason for the discount.
Every home is different, location, condition, etc... Therefore it is difficult to offer a price suggestion, with such few details.
80% of Short Sales fail to close. Just wait a few months and those Short Sales turn into Lender Owned property's.
The Bank is not going to give away their money. Phoenix is loaded with Lender Owned / REO`s Property`s that is where you should be looking. If you are not working with a Realtor, email me and I will send you a current list.
However if you insist.
The Comps are a good place to start.
Real Estate Professional / Prestige Realty
Bianca Bennett / 602-570-7898
CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
I have done lots of BPOs and would be happy to help you figure out a good offer price for the property in question. Let me know if I can help.
Tierra Antigua Realty