Home Buying in 38104>Question Details

Bruce, Home Buyer in 38103

I am looking at a house that is a short sale. The asking price is 110,000. How can I talk the bank down to under a hundred thousand?

Asked by Bruce, 38103 Fri Sep 16, 2011

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9
Don,
Your answer to this question is terrible. Plain and simple. It's disappointing that you leave the reader with the implication that you are practicing just on the edge of being unprofessional. That's not the impression professional realtors want nor need to be associated as. There are many great homes that have been forced into short sales that aren't "dumps", "dogs", or other metaphors... Shanna and Lori have both given excellent advice to the Buyer here... Many of the banks have done their homework and already know the good and bad points of a particular short sell home...they're going to accept an offer that is in the market value area or, as Lori said, within 80% of that pricing. Communication,,GOOD communication skills are highly necessary in our business,,, even when responding in a forum such as this.
Tina Evans, Broker
1 vote Thank Flag Link Sat Sep 17, 2011
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Sat Sep 17, 2011
You present as much evidence as possible that the house is a dump. A dog. A pile of steaming [you know what]. You show the bank that they'd be lucky to get $80,000 for it. Shanna's advice is valid regarding a CMA. But what you want to present to the bank ought to be (without violating professional ethics) as low a figure as possible. Consider accompanying your offer with contractor estimates to repair anything and everything that's wrong with the property. Those estimates should--again, without being dishonest or misleading--be as high as possible.

Accompany your offer with photographs showing just what a dump the house is. Even if there are a lot of good points to the house, there are always angles and shots that will demonstrate a house's weaknesses. Water stains in the ceiling from current or past leaks. Photos taken near ground level with the house in the background that illustrate the weeds or tall grass. Mold (under the kitchen sink, maybe, or in back of the water heater) is another one. Any cracks in walls or the foundation. That sort of thing.

Hope that helps.
0 votes Thank Flag Link Fri Sep 16, 2011
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Hi Bruce,

The first thing you should do is have your Realtor do a Comparative Market Analysis (CMA) on the property using Sold comps within a 1 mile radius of the property (the closer, the better) that have Sold within the last months. This will give you current market value. Before the seller's lender/investor will approve the short sale, they will order either a Broker Price Opinion (BPO) (which is similar to a CMA) or an appraisal. The seller's lender(s)/investor(s) will approve the price based on the BPO or appraisal they have done.

Once you have your Realtor's CMA, you will know if it's worth offering less than the list price of $110,000.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Fri Sep 16, 2011
With short sales the listed price might not even be a number the bank has seen or come up with. Often the seller and their agent dream up a price that will encourage offers and if none come they will lower and lower the price until one does. Then they show it to the bank and HOPE they accept it. Often the bank wants MORE than the list price and will take nothing less or just ignore low offers waiting for someone to offer more. Have fun, short sales are a real rough ride much of the time.
0 votes Thank Flag Link Fri Sep 16, 2011
Bruce,
The bank is going to try and recupe at least 80 percent of what they have loaned. But, it also greatly depends on an appraisal which is called a BPO. The bank will have to order this report before making a decision on where they will short sell the property. I would be glad to give you specifics if you have a property in mind. Short sales can be very tricky, time consuming, and lenghty. They take patience and persistance but it saves the bank foreclosure proceeding fees to lawyers, so generally a deal can be struck. My number is 901-355-4020 if you would like to furture discuss.
0 votes Thank Flag Link Fri Sep 16, 2011
Call me stephen anderson keller williams

901 338 9043
0 votes Thank Flag Link Fri Sep 16, 2011
Bruce,

You simply make an offer where you feel comfortable as you would with any listed home whether it is a short sale or not. Please be aware, the bank and the investors and servicers holding the note for this asset may have other items that they consider when reviewing a short sale offer. The listed value of $110k could be a Pre-approved short sale amount- which may be the minimum amount the bank is willing to accept. You will need to ask those details of the listing agent to make an offer that is likely to be accepted and not simply waste time for your or any other party involved.
0 votes Thank Flag Link Fri Sep 16, 2011
Hi Bruce,

Everything is negotiable. Why deal directly with the bank instead of hiring a realtor? An experienced realtor can navigate and guide you in this process. He/she will try the best to get you the best deal.

Best.

Maria
0 votes Thank Flag Link Fri Sep 16, 2011
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