Paragon Real Estate Group
Many agents set short sale prices well under what the lender/bank will actually take to get an offer on the table. Their goal is to find out the lowest price the lender will consider.
When two offers on a short sale are similar in price Cash is more attractive to the lender because there is usually no appraisal involved and no chance of losing the deal if the buyer doesn't qualify.
Still, there is a bottom number for every short sale and cash won't help lower that.
Cash helps most when there is a quick closing on a non-distressed property. I just got a client over 30% off the list price (and the list price was already lower than other properties in the community) on a Naples condo in Pelican Bay. Cash and a quick closing of just 2 weeks brought the price down 30%.
On the other hand, 30% off is not the norm in Naples, Florida. Our average off list is more around 8%.
Good luck with your offers!
Get connected with an agent that can continue to help you.
Your question is specific to a short sale. Short sales are mitigations of loan defaults and a process of a BPO being considered from the servicing lender, takes priority. A servicing lender (bank) will usually consider and approve a short sale if they are netting 88% of fair market value.
So, get with your agent, do the math and start writing.
V â€“ when you get a chance please update all taxes on MLS listings to 2010 taxes.
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Charles Rutenberg Realty
933 Lee Road, Suite 300
Orlando, FL 32810
Office: (407) 622-2122
Cell: (407) 222-4545
As an agent who lists and sells short sales, I set list price on a home as close to market as possible but keep in mind the bank has the final say.
The major benefit of cash is you may be in a better position because you are not dependent upon a lender's appraisal as you would be with a loan. This can add more time to a closing if the appraisal comes in low for the buyer's loan.
However, the short sale lender will have a bottom line and they don't care if you are cash or financing as long as they get what they want to net at closing.
Licensed Associate Broker
Accredited Buyer Representative
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William Raveis Legends Realty Group
Regarding offer price, have your agent get you the most up to date market trends. There are also some other tricks to getting a great price approved on a short sale that your agent should do for you!
Keep in mind, no agent makes the price the market does, if your agent is not getting you the information on the market trends or giving you the proper advice on closing short sales, contact me and I'll get you the most up to date stats for the area.
Good luck with your search, I hope this helps!
Having done a few short sales, I would tell you not to put your best offer forward but be within reason. Be prepared for the lender to counter your offer and dont hold your breath. If you are set on purchasing a Short Sale, I would suggest watching Short Sales that are currently in Pending Status because chances are that by the time the lender gets back to the buyer with a counter offer, the buyer could be gone and/or maybe they had already put their best foot forward.
Sit down with a Realtor who knows the market and who is experienced with short sales. An intelligent offer is better for you than a low-ball offer that does not make sense.
For a short sale, that is dependent on the bank and what price they are willing to accept.
On short sales the price is normally not preapproved so there is no certainty you can buy it even at the full asking price. Often short sale listings are priced too low and after the lender does their appraisal they will come back with a much higher counteroffer to the buyer. Short Sales are not usually the best bargains, Bank REOs are.
Cash may help you buy a short sale where the listing agent and an insider investor may be engaging in fraud. What they do is send ficticious repair estimates to the lender with the hopes that the insider can buy it well below market. Then they flip it to you for the highest possible price. Financed offers may not be able to buy a "flip" property because the lender wants to see a seasoned title.
On a Bank owned property you may have an advantage over financed buyers if there are condition issues that may prevent a sale. You need an agent to help you with REOs because you MUST get out to the property the same day it comes on the market and make your offer the same day or you will miss the best deals.
Hope this helps.
In most transactions, it's all about the bottom line. Which offer is going to net the Seller the most money and in how much time are considerations for the Seller. An offer depends on several factors, including what the list price is, what the property condition is and what the comparable sales have been in recent months. Call a Realtor!
Cash is no advantage to the seller. Whether financed or cash sale - the seller still gets cash at settlement.
Cash is King - yes.......but does not offer a sizable discount or advantage over a qualified buyer financing a purchase.
Serving Maryland, D.C. and Northern Virginia
Any seller is going to evaluate each offer and the terms carefully to determine if they would like to move forward to a bilateral contract. Cash is king as these days the underwriting process is becoming more stringent. That being said a solid financed offer will still be cash to the seller at the closing table.
Each property needs to be evaluated on it's own merit and a determination made as to an offer that is in line with it's current market value. Some properties may be overpriced and an offer significantly under the list price is valid but the reasoning behind that offer should be submitted to the seller. You will find many short sales that are listed under market value; kind of a "teaser price" so the listing agent can get negotiations started with the lender or lenders. You have to take the list price of any short sale with a grain of salt (some you might even need that lime and a shot of tequila) and contracts are contingent on lender approval after they complete their own valuation.
A qualified RealtorÂ® is your best bet and will be able to provide you complete information on any property. A few recommendations I would make; I would tell you to not sign a buyer's broker agreement with anyone. This is a form an agent will use to tie you up and ensure any transaction you make will only be through them. Find an agent who is happy to perform their services with the knowledge that if they do not properly meet your expectations they will lose your business. Second, do not call a listing agent about a home they have listed as their initial relationship with the seller will prevent you from working out the best deal. Finally, I would recommend that you interview at least three qualified agents to assist you and select one who you feel will have your best interests as their primary goal. I work almost entirely as a buyers agent in Palm Beach and Martin Counties and certainly would be honored to be on your list if your search brings you to this area. If you are bound for Orlando I have fantastic relationships and would be happy to help you define your goals and point you in the right direction with the referral of an agent who will take very good care of you.
I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty