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Elyan, Home Buyer in Seattle, WA

What shall i do?

Asked by Elyan, Seattle, WA Wed Mar 28, 2012

I submitted an offer on a short sale a month ago. I submitted the full asking price (180k). Houses within a mile radius are e - 5k. Today, the bank countered with 60k above the asking price. There is no single home in that area that worth 240k!

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12
Here is a website to see if it's even on the foreclosure path.

USA-Foreclosure.com

It's free and you can sign up to get the addresses, and see if the property your trying to get is even on that path yet. Or the borrower just asked their agent to short sale it and now the lender or their servicer is just now into the process of knowing the house may go to them, and they are just starting that process. 90 days, it could be a year or more.

Best to you, again.

HLR
0 votes Thank Flag Link Wed Mar 28, 2012
Remember...the only thing between you and that house is another buyer who is willing to pay more. Often the bank can't justify not trying, so let them play their game and you play yours.

It's not about yes or no from the lienholder(s)...it's about patience. It's not over until and unless someone buys it for more than you are willing to pay. It could take another 60 days for them to get real, depending on how far behind the owner is in their payments and whether or not there is a Trustee Sale date.

The closer it gets to foreclosure...the more real they get. Heck...you can let them foreclose and buy it as an REO. Patience! If you are not willing to play the game for at least 90 days...stay away from short sales. Most take at least 90 days. "...a month ago" is no time in short sale negotiations.
0 votes Thank Flag Link Wed Mar 28, 2012
You can always have your buyers agent submit a counter offer for you along with comps to support the purchase price. Your other option is to move on and find another house.
0 votes Thank Flag Link Wed Mar 28, 2012
Elyan I believe that if you do not want to continue with the purchase of that house then you have to move on and have your agent to search for another property. Unfortunately the Loss Mitigation Department within the Bank that has the loan , do not negotiate the value or price of the property as we realtors do. The bank is not a broker/realtor. Period.
0 votes Thank Flag Link Wed Mar 28, 2012
As well as the banks acting very stupid, they can't keep track of what side is doing with the another. Too large to work reasonable to the person trying to purchase a home. Asking price, may not of been an approved by the bank to start with, some agents list the home, get a buyer like your self to make an offer, and then the bank that was never given notice that the home was in a short sale, says wait a minute we need to do it our way. It still needs to appraise out, for your loan, and unless you are paying cash, and don't need a loan. So figure out if their just totally off base and move on, or have a reasonable true value, and make sure it's a current value for your loan.

Short sales are hell, but think you have figured that out already.

HLR
0 votes Thank Flag Link Wed Mar 28, 2012
Not much you can do really except get with your agent & look for another house. You cannot get attached to a particular house until you have an accepted price, otherwise you will over pay. The bank will probably take this house in foreclosure & sell it later for less money then you offered. They are incredibly stupid! If you do not have an agent, hire one of us right away to work with you.
0 votes Thank Flag Link Wed Mar 28, 2012
Move onto a different property?

Not sure what part of Tukwilla you're referring to, but there was one sale at $245k in November (and some much more expensive than that in the past six months, but obviously very nice houses).

Banks do make mistakes. Earlier today I was mentioning a house that did not sell at short sale for $225,000, and the bank put it on the market after foreclosure at about $240,000. It's now listed at about $180,000.
0 votes Thank Flag Link Wed Mar 28, 2012
I just searched Tukwila for short sales and I found one listed for 180,000 so if that is the one that you are talking about then I would have to agree with you and say that 240,000 for that property is asking to much. If you were my client I would suggest that you don't counter back to much higher than the 180,000 that you offered in the first place however I don't know you or how much you want this property so I can't give you the best answer. All I can say is that in my opinion $180,000 to $190,000 is what that property should sell for.
0 votes Thank Flag Link Wed Mar 28, 2012
I would walk, but they did have an appraisal done in that time as well as some BPO's, so ask to see them, as an appraiser we don't use the properties on the street, we have to use recent sales, and there maybe none near the subject. Sometimes the agent that listed the house, sets the price, with what they think it will sell for, but it sounds like there might have been a 2nd loan that wants their loan covered too. But that has nothing to do with value. Get your agent involved and ask to see the appraisal, or just walk away, and use this a learning experience. Short sales are not always the best way to go. Bank REO, don't have the problems that short sales have, and your working with one owner, and not the borrower, and what ever banks have a loan on the home in a short sale.

Best to you.

HLR

I worked that market for 15 years, it's a uneven market, one area can be hot, the next nothing going on, so again the best to you.
0 votes Thank Flag Link Wed Mar 28, 2012
Elyan,
Banks are subject to the work that is done for them. An agent or two has performed a Brokers Price Opinion of the home and they are weighing your offer in light of that information. The problem is, the BPO may or may not be accurate.
If you were my client I would perform an updated market analysis, factor in the homes present condition and discuss whether we want to do anything with our offer. Don't make an emotional decision. Consider other homes in the area you may want to consider before you are committed to this home at any price.
0 votes Thank Flag Link Wed Mar 28, 2012
There are some home currently listed above $240,000 so the home you are trying to purchase could be worth that much. Are you working with your own agent? If you e-mail me and give me the address I could tell you around what the property is worth.
0 votes Thank Flag Link Wed Mar 28, 2012
This is typical. You need to understand the bank never came up with that $180k price in the first place and since it is a short sale you know they are owed more than $180k so the bank could, and did, ask for more. The listed price is "Dreamed Up" by the seller and their agent to attract an offer. Then they submit the offer to the bank to see what they say. This is why having a good agent helps, it can be frustrating for a buyer. You can make a counter offer of $220k and see if they accept it. Good luck.
0 votes Thank Flag Link Wed Mar 28, 2012
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