The listing agent is doing a disservice to the seller by not sending the first offer that comes in to the bank. The seller should be told that this is a short sale and that all offers should be submitted to the bank.. First offer in, low or not. The Bank will make a decision on how much of a hit to take, not the seller.
Although people want to think they are in control of their home and yes, in the grand scheme of things they are, As they are as they are on the hook for the note. But not in a short sale. The bank will say.. o.k.. Weâ€™ll take the hit -or- sorry, we will not take that amount, but we will accept this number...
There are many, many great buys that are short sales right now. If you have a trained agent in your corner they close fast. I recently presented an offer, taught the listing agent what to do.. and we had a response in writing in 14 days. That is a personal best. The average, if the agents are knowledgeable is 4 weeks.
Due diligence is key to any transaction and you must be fully prepared to make it work in your favor. Ignore the naysayers as they are just not qualified or equipped to understand the process and make it work.
See my blog: http://www.trulia.com/blog/john_sacktig/
Well, let's see...if the house is listed at $200,000 and it comps out at $200,000 and you offer $100,000 (after all it's a short sale so they'll take any offer) you aren' going to get the seller, and especially the bank to sign/accept anything. Remember the "seller/owner" can sign any contract but it's ultimately up to the bank to accept the offer depending on how much they are willing to lose.
Contrary to what Marc says, good offers that have no contingencies and meet the banks requirements DO make it to the closing table, but a short sale is often not short at all. However, I have recently had banks respond to my initial request in less than a month, and send the appraiser out within a week of receiving a signed contract (this was Wells Fargo) and they seem to be getting better at responding in a reasonable amount of time.
Get your agent to do the comparatives for you, and determine if the list price is fair in relation to those comparatives. Then make your best offer in writing, and see what happens. Again, it''s ultimately the BANK who will approve your contract (and they can counter-offer one too).
Good Luck! Just get a good agent and it will work out well for you! If you have patience, short sale has its advantage for the buyer too!
Simple. Have your agent fill out a contract and present it to the seller. If you don't get a response in short order, move on to another house. Most short sale offers never make it to the closing table, and most short sale homes are not a good deal. But if you see one you like, make an offer and prepare to be very patient with absolutely no specific closing date in mind.
Century 21 Joe Tekula Realtors
Phone (direct): (973) 584-4235