Home Buying in Minneapolis>Question Details

msteeree, Home Buyer in Minneapolis, MN

I SEE A PROPERTY I LIKE IT SAY THE SHORT SALE PERIOD ENDS IN ABOUT A MONTH. IS THIS A GOOD TIME TO MAKE A OFFER LOWER THAN THE ASKING PRICE?

Asked by msteeree, Minneapolis, MN Sat Jan 19, 2013

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I have found that most banks could care less if the short sale fails and the property turns into an REO...it just comes down to what the appraisal is on the property (or BPO) relative to the offer made by a buyer. You did not paste the address so my best guess would be the end of redemption is coming up in a month. That is when a seller has to move out of the home and the foreclosure process is complete.

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.
1 vote Thank Flag Link Sat Jan 19, 2013
The Address is 7172 Unity Ave , 55429 I went back to MLS online it is no longer that, It said short sale ending 2/24/13 , I wanted to do a cash offer was not sure if lower offer accepted on short sales , sounds like it is not. Your reply was straight forward and very helpful ,thanks
Flag Sat Jan 19, 2013
Seller's asking price is not the actual selling price until the lender approved the price that the seller asked. You have to know that the real seller of the short sale property is not the owner of the property but the lender of the first mortgage the seller has.Usually seller's asking price is lower than the market value of the property. Therefore check the market value of the property and the loan amount that the seller borrowed from the first mortgage.
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.
1 vote Thank Flag Link Sat Jan 19, 2013
PLEASE KEEP YOUR VOICE DOWN
0 votes Thank Flag Link Thu Feb 7, 2013
By the way, I forgot to mentioned:
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???
0 votes Thank Flag Link Tue Jan 29, 2013
YOU LOST YOUR CHANCE
Flag Fri Feb 8, 2013
Location! location!! Timing!! Timing!!
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!
0 votes Thank Flag Link Tue Jan 29, 2013
nnnnn
Flag Fri Feb 8, 2013
Now is a great time to huddle up with your real estate professional.
-
"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?"
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"Hey, my dear agent," you might ask, "how much lower was the short sale sold prices than similar traditional sales?"
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"Hey my dear agent,' you might ask, "and just how long was required to sell / close the short sale versus a traditional sale?"
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"Hey dear agent, how many accepted offers on a short sale actually result in a sale?"
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This is when you say, "I will save this little and endured all that abuse!"
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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?"
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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
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Mon Jan 28, 2013
Hi msteeree!
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.

Good luck!
0 votes Thank Flag Link Mon Jan 28, 2013
Dear Buyer,

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.
Sincerely,
0 votes Thank Flag Link Sun Jan 27, 2013
Dear Buyer,

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.
Thanks,
Ravit.
---------------------------------
LIVE SEARCH the Entire MLS:
http://www.results.net/ravit.berg

Ravit Berg @ RE/MAX Results
http://www.results.net/ravit.berg

15451 Founders Lane | Apple Valley | MN 55124
Cell - 952.334.4179 | F - 651.460.1272
ravit_berg@hotmail.com | https://www.facebook.com/ravit.berg
0 votes Thank Flag Link Sun Jan 27, 2013
Yea sorry it took a bit to get back to Msteeree Trulia does not notify us when someone replies to our post (which is weird but whatever.)

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.
0 votes Thank Flag Link Tue Jan 22, 2013
Read Chris's answer below. When I have a client ask me for a pre approval letter to offer on a short sale I always recommend that they go out and look at more homes. Short sales can be done, but they often do not work out.

-Matt
0 votes Thank Flag Link Mon Jan 21, 2013
It's a great time to make an offer...especially if you like the place. The reason I think that way is simple...if you don't make an offer, you'll never get the place. The price of your offer depends on too many variables to comment much. Even an offer ABOVE the asking price might not be accepted by the bank. It boils down to this... how much is the lender willing to lose to make the current and anticipated future problems go away?

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.

Mike Kelcher
REALTOR, SFR
RES Realty
763-228-2967
0 votes Thank Flag Link Sat Jan 19, 2013
I completely agree with Chirs's answer, if you could give us some more information about the actual property address maybe we could advise differently.
0 votes Thank Flag Link Sat Jan 19, 2013
Whisper, to yourself, "low ball offers don't work".
Now say it a little louder.
Keep saying it.

The Banks have absolutely no incentive to approve a Shortsale Offer.
Do you want the place, or not?
0 votes Thank Flag Link Sat Jan 19, 2013
Very Funny!! :)
Flag Tue Jan 29, 2013
This is a great time to make an offer. The bank will benefit more (usually) in a short sale than going through the foreclosure. You need a professional Realtor who is experienced with short sales on your side. Your Realtor will find out how much groundwork the selling Realtor has done to prepare the selling entity for the short sale. Your Realtor will also show you market valuations in the area and recommend a realistic offer. Thank you for your question. Please call anytime if you have more questions.
Web Reference: http://www.mywra.net
0 votes Thank Flag Link Sat Jan 19, 2013
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