Do you really want this house? Pretend it is not a short sale- would you pay $450K for it? If that is the current real value? What kind of activity is around that house listing? Any other offers?
Of course you want to get it for as little as you can- that makes sense.
If you believe some of the hype that this Fall many banks will be releasing a new "flood" of foreclosed properties for sale- said Bank will be more willing to unload on a short sale because they'll be up to their neck in another month or 2.
Just my 2 cents. You really don't know until you put in an offer and try.
Thanks, and good luck,
Try to determine how far along in the "short sale" process the seller is and if a bank has done an appraisal. If this is the case, you can depend on them expecting a number close to their appraisal price. If there has been no appraisal, base your offer on the most recent comps. If you are serious about the property and want it, your offer should be a reflection of the current local RE market.....
If the comps are showing a price range of $440-450k, then your offer should be somewhat in that ballpark.
I had a recent shortsale with Countrywide. The house was listed at $264,900. A buyer made an offer of $240,000. The offer made its way through Countrywide. Negotiator 1 approved it, negotiator 2 approved it, then the investor countered the offer back at $255,000. It took two months to go through this process and by that time we thought they were going to accept the $240,000.
The buyer ended up responding with a highest and best of $248,000. Two weeks later Countrywide accepted the $248,000.
I didn't see the appraisal that was done by Countrywide but my guess is that it was for $255,000.
Short Sales take a lot of patience from the buyer. When you view the home, you are excited and it doesn't seem like a big deal to wait on an approval from the bank. As the days go by with no status updates it gets harder for a buyer to wait. I had one buyer wait 5 months last year before pulling the plug and going after another house.
Long & Foster Real Estate, Inc
Bethlehem, PA 18020