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Frank Chu, Home Buyer in San Francisco County,...

I put a offer for a house in brentwood,ca for $236,000 the realitor took my offer and submitted it I was the

Asked by Frank Chu, San Francisco County, CA Tue Jun 2, 2009

highest and only offer. It is a short sale of course so anyway I have waited since March and finaly today the bank told the realitor they counter my offer and said $320,000 what the hell is going on here. I wish the US government let all those damm banks fail now the banks have all the money they need and they dont need to sell anything because they are now solvent.good luck to anyone who can buy anything in this market seems like the fire sale is over and the bank would rather sit on the unsold homes then to sell at a lost since they dont have to anymore with all thetarp money. Has anyone else have the same problem.

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It seems that the wrong expectation was set from the very beginning. Your realtor should have told you that short sales can takes months and that none of the terms are set until the bank decides on the price. The initial offer doesnt really mean anything until the bank assigns a negotiator . the negotiator decides whether the terms are fair and then the bank may accept if not, they counter. This is not always the case. If there are two banks involved, it can be hard getting the second bank to approve the sale, especially if they are completely under water. The best thing for you would be to talk to an agent with experience handling short sales. Good luck.
2 votes Thank Flag Link Wed Jun 3, 2009
Counter back at $199,000.
2 votes Thank Flag Link Tue Jun 2, 2009
Frank-

The biggest problem has nothing to do with the short sale itself. It is the fact that you are working with a realitor instead of a REALTOR. A realitor probably sells reality or perhaps in this case, is unrealistic. A REALTOR helps people to buy and sell REAL ESTATE. I hope this helps.
0 votes Thank Flag Link Thu Jun 4, 2009
Frank,

Ask yourself what is the house worth now. Right now not in March but now. Have the values come back? What are the most recent comps. The lender is only trying to get the best value they can and you would do the same thing if you held the paper on the property.
Again if you held the paper maybe you'd see prices coming back and figure forclose hold and wait. What ever you do don't get all emotional it will ruin you ability to negotiate.
0 votes Thank Flag Link Wed Jun 3, 2009
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
Contact
Frank,

Who is the listing agent? Which bank is holding the paper?


Adrian Huntington
Coldwell Banker Coon & McCreary Realtors
3709 Lone Tree Way,
Antioch, CA 94509
adrian@yourecorealtor.com
925-212-6456
0 votes Thank Flag Link Wed Jun 3, 2009
Frank,

Welcome to the wild world of Short Sales.
You made an offer that was way below market value and the bank rejected your offer and made you a counter offer. Banks are not giving property away. They try to get a market correct price for the house that they sell – whether they are REOs or short sales.
The ball is in your court. Counter the bank back and be prepared to wait for an answer. If your, and your agent, believe that your offer is a good one, go for it. Real estate is a business of negotiation. If your original offer was way off and that is all you are willing to offer, move on. Find another house. But make offers that make sense if you expect to get an answer that makes sense.
There are excellent properties to be found, at good prices, in Brentwood and elsewhere. Your agent should work to enable you to find the one that meets your needs and your pocketbook.
0 votes Thank Flag Link Tue Jun 2, 2009
Many short sales list very low to start the process. Let’s say you find a home listed at $299,000 but because it is a short sale, it may not sell for this amount. Short sales often still must be approved by the bank that holds the loan and it may or may not be approved at this price. It all depends on the other homes sales in the area and the specific portfolio of the bank that holds this property.

Currently, Brentwood has lot of those. I know, I live in Brentwood. My advice is to find a good Realtor that can help you with the process. Start by reading a few profiles in here. Remember, as the buyer, it doesn’t cost you anything to have a experience Realtor working for you, because the seller pays the buyer’s agent.

I hope this helps.

Tony Abad
Realty World
925/325-9546

http://www.TonyAbad.com
0 votes Thank Flag Link Tue Jun 2, 2009
Unfortunately the lien holder either received an appraisal that reflects they will eventually get that price, or that it is the fair market value in the area the home is in. Without knowing what the listing price was when your offer was made, and what the terms are it is hard to determine how to negotiate.
Meet with your Realtor if you are interested in negotiating. Perhaps there is a way to meet somewhere in the middle. You can counter back, but if you do decide to counter lower they may outright decline the offer. Ask your Realtor if they know the amount of the loss the lien holder will be taking, and if they have indicated what their 'net' number is. They should have this information.

I wish you the best of luck on this. Short sales are a way of negotiating to a good price--but the lien holders are starting to try and get fair market value for the properties. I have had that happen, and it is frustrating.
0 votes Thank Flag Link Tue Jun 2, 2009
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