Home Buying in Hercules>Question Details

AB, Home Buyer in Hercules, CA

How much room of negotiating do i have for short sale homes.?

Asked by AB, Hercules, CA Fri Jul 6, 2012

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Answers

3
Relatively little -- whether you are the buyer or the seller, the bank calls the shots.
0 votes Thank Flag Link Fri Jul 6, 2012
The best thing your realtor can do for you is to research the details about the property in terms of

1. fair market value compared to similar homes in the market
2. who are the lenders
3. how much is/are the loan balance(s)
4. what type of loan
5. how long has property been on the market
6. was it in contract before ---- and if so, what happened
7. was a BPO (broker's price opinion) already performed
8. is the short sale already approved --- if so, the lenders would have already stated what they want to net from the proceeds (which will also determine what price and expenses they will approve)

Knowing the answers should give you and your agent an idea of whether or not you have room to negotiate. Just remember, short sales are typically already priced a less than market value in order to stimulate interest from buyers.

Good luck.
0 votes Thank Flag Link Fri Jul 6, 2012
You need to understand that likely the bank, which has the final say on a short sale, has not come up with the listed price. Normally the seller and the agent dream up a price to encourage an offer that they then take to the bank for approval. The bank often says no, I want more than even the listed price. So you should be ready to pay something less to something more than listed price if you want the house. Sometimes if you offer too much less the bank just ignores the offer while waiting for better ones to come. You need an experienced Realtor working with you on short sales.
0 votes Thank Flag Link Fri Jul 6, 2012
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