I would say that a low-ball offer on a short sale is pretty much useless in most cases unless the property is investor type, so you should either look at market value or just wait until the home becomes REO.
And FYI if I am right that the end of redemption is in a month you don't have a chance of closing so don't waste your time.
If the asking price is lower than the market value and the loan amount of the first mortgage. Better not make an offer lower than the asking price. Better talk to an agent who knows about the short sale property before you decide the offer price.
California inventory are low right now, many agent had many offers before got the property for the buyers. Offer are higher than listing price in general, at less in some of the area of CA. Many investors purchased short sales or foreclosed properties for lease, and.as Investors portfolio, I guess is better than interest rate in the bank right???
I am sure each state is little different!
I had few of short sales, bank sales before. Each time is different. Some area maybe 45% off, some area is 25 % off, depending on the location! Timing! Supply and inventory. Some area hold up the value better than others. Some time the last offer got on the boat! Because the offer before you could be either can't get the loan, or tired of waiting, too much repairs, or for some other reason...I had short sale once got total five offers, the last one finally got it. Because Bank decided is better let it go than going a auction!
"Hey my dear agent," you might ask, "could you do a little research for me? I would like to know what the average listed price of a short sale and what the average SOLD price turned out to be in Minneapolis for the past six months for home like the ones I like?"
"Hey, my dear agent," you might ask, "how much lower was the short sale sold prices than similar traditional sales?"
"Hey my dear agent,' you might ask, "and just how long was required to sell / close the short sale versus a traditional sale?"
"Hey dear agent, how many accepted offers on a short sale actually result in a sale?"
This is when you say, "I will save this little and endured all that abuse!"
Have your agent prepare the real numbers for you and you will be better able to answer your question, "Does may low ball stand a snowballs chance in Florida?"
The reality is, buyers need to lose a few before they realize their strategy is flawed. Meanwhile, the professionals whose guidance is being ignored are fully aware they will be blamed for this failure. You will likely find a new agent, but your hearing will be better this time around.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Wondering, what is your reason for wanting to offer a lower price? Do you know if the property already has an offer in progress? Many times the banks will just keep collecting offers waiting for the best offer before they make a decision. What does your agent say??
Ah, perhaps that's the point. Do you have an agent? It's never too early in the process to secure your own agent. Many agents listed here specialize in short sales and know all of the ins and outs. And, even WITH that level of knowledge, there's no way to predict how the bank will decide as to whether or not they will accept, reject or counter the offers they have.
Thank you for give me the opportunity to answered your question!
I am specialized in short sale and distressed properties, from my past experiences, this what I would do.
First, I will do a title search, make sure the property is on the default or short sale, knowing the time maybe foreclose?
2nd. I will call the listing agent to verified the condition of the property, and asking if is any offers, if is how many? ?? And requirements for the offer to be accepted??? And all the information on the property as much as possible.
Third, If agent tell me so far got no offer or very little offers; And after we visit the property see the condition of the property, than I have better understanding of the property, so I l be able help you!
I hope this is helpful to you!
Please feel free to email or cal me if you have any more question.
For the past 7 years I specialized and still in short sale and distressed properties.
I would love to discuss with you the various options with short sales and foreclosures.
I am also SFR and CDPE certified, designations related to Short Sales and Foreclosures.
Please do not go to properties with one month left as it can potentially create new issues for you.
I look forward to hear from you and potentially work with you helping you with your home search.
Thank you Ravit.
My contact info is below.
LIVE SEARCH the Entire MLS:
Ravit Berg @ RE/MAX Results
15451 Founders Lane | Apple Valley | MN 55124
Cell - 952.334.4179 | F - 651.460.1272
email@example.com | https://www.facebook.com/ravit.berg
1) I pasted the Hennepin County foreclosure website. What I normally do is just use the city search to make my life easier (the address is VERY picky on exact ones). Well, if it was Feb this one should have gone in August unless it was a 5 week deal (seeing this a lot more because of the loan modification BS). I can't find it on the foreclosure website which is annoying.
2) The tax records are all crazy though. It actually looks like the association got ownership of this property which would be pretty rare, and on top there is mortgage insurance involved.
3) If I was your agent I would have to contact the listing agent to confirm everything and see if what he tells me matches up with the tax records. I sometimes get my title company involved to clarify some things as well.
4) There is a slight chance since you are cash that the deal could get done if you would have acted sooner, but I still think the probability is slim to none.
5) FYI I would have paid full list price for this house. It is in a good location and the numbers work out excellent for a rental. Although normally guys want to put the least amount of cash into the property as possible.
Don't wait longer. Short sales take time. Take a good look at the property with the attitude that you are buying it "as-is"....even if it's not listed that way. Don't expect the seller to fix or warrant anything. Don't expect the seller to pay your closing costs...if the sellers had money...they wouldn't likely be in their current situation.
I'm experienced in short sales and would be happy to help you.