Home Buying in Fairview>Question Details

Emh, Home Buyer in 97024

How negotiable are short sales? What about asking for closing costs?

Asked by Emh, 97024 Wed Mar 18, 2009

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Some are quick - some are slow.....just depends on how far they are into the process and whether they've had a Broker's Price Opinion and/or appraisal done yet.......once they've done that - the process moves a little faster. It used to be that most banks wouldn't talk to their clients/Realtors about short sales until we had an offer to present to them - then they would finally start their review. I'm seeing more banks start to get some preliminary work done much earlier - which helps the timing go a little faster.

Kelly Gebler
Real Estate Broker & Loan Officer
Keller Williams Realty & Sunset Mortgage Co.
0 votes Thank Flag Link Thu Mar 19, 2009
Thanks everyone for your replies - very helpful! One last question I have is how long are short sales taking nowadays? Are banks replying back faster now?
0 votes Thank Flag Link Thu Mar 19, 2009
Everything is negotiable! It's cheaper for a bank to accept a short sale deal than to have to go through the full blown foreclosure - the last one I closed, the bank paid $9000 towards my buyer's closing costs...they ended up losing around $70,000 by the time all was done. What helps is to make sure that your Realtor has done a comprehensive Broker Price Opinion/Market Analysis to show how you landed at the price and include a list, complete with photos and rough estimates, of any work needing done to justify your price. The banks have not seen these properties and rely on Broker Price Opinions and Appraisals to help them determine what price they should sell for - if you do your homework and your offer makes sense, they will usually negotiate.

The only snag I've run into lately is the fact that the seller has to accept the offer first before the bank even sees it - I've had a couple of instances where the seller's weren't ready to accept just how low their values had dropped no matter how much info we provided to justify our price so the bank never saw our offers. Even though the ultimate loss falls on the bank and not the seller - it all boiled down to the seller's pride in their home and value. In one instance - we were within $15,000 of the seller's bottom line he would accept and he wouldn't do it.....and the house is still sitting for sale with no offers. That $15,000 would not have had a huge effect on the seller's end as the bank was already looking at losing a pretty good amount of money - but that $15,000 in price on the buyer's end did make a difference in that the house was overpriced with the amount of work needing done and made a difference in her payment.

There are some great deals out there right now for buyers and everything is negotiable! If you aren't working with a Realtor and would like some helping finding one of those deals - let me know. My team would love to help!

Kelly Gebler
Real Estate Broker & Loan Officer
Keller Williams Realty & Sunset Mortgage Co.
0 votes Thank Flag Link Thu Mar 19, 2009
Emh...

I have 9 short sales going right now. 5 have closing costs of up to 3% of the price. Some we have come off the asking price by as much as $100,000 in 25%. The price issue is really not a matter of % off but of how the home is priced to start with. Some agent have the home at what the market value should be and others have the home much lower or much higher than value.

So I would say this is case by case. A short sale in my opinion is the best buying option if you can find something you like as many of them are selling way below the true value. They are not always easy to find and easy to track but with the help of a good agent you will find them.

Best of luck to you! Of course let me know if you would like our list of short sales that we provide weekly to our clients.

Regards;

Dirk Knudsen
Re/Max Hall of Fame
Re/Max Metro Gold
503-799-8383
Web Reference: http://www.theknudsens.com
0 votes Thank Flag Link Thu Mar 19, 2009
Definitely ask for closing cost assistance, but be prepared not to get everything you ask for. Some banks arre only paying 3%, some will pay more. Each situation is different and unique! I guess you just need to make sure the agent doing the short sale negotiations knows what they are doing! Just like we do our homework when researching a home or area, do the same with the listing agent. Ask how many successful short sale transactions they have had in the past year. That will tell you if they know what they are doing. Good Luck!
0 votes Thank Flag Link Thu Mar 19, 2009
The banks are getting better and the agents are getting better on how they present the offers. You can get the bank to pay for the closing costs. Just ask for it. Remember that you might be bidding against another buyer when you write the offer.
Tom Inglesby, Broker
RE/MAX Equity Group Inc
503-319-9035
0 votes Thank Flag Link Wed Mar 18, 2009
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