Home Buying in Scottsdale>Question Details

Masha Vladi, Home Buyer in New York, NY

In Scottsdale short sale 10% off list price offer. Thoughts? Place has been on MLS 70 days, 1 price reduction 2 months ago

Asked by Masha Vladi, New York, NY Sun Oct 13, 2013

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Jill Schweitzer’s answer
I glanced at some of the great answers below. Did you just see the property online? If so, most likely the status is UCB (under contract taking back up offers, so it looks 'active' online, but it's not - that's why I recommend just having a realtor set up the mls search for you so you can weed out those that are basically already pending (the UCB status is displayed on the mls, wish it was online too). 70 days on the market, if no offers, would seem that it is overpriced. I'd be happy to look at comps specific to that property for you.
0 votes Thank Flag Link Wed Nov 6, 2013
Understand the bank that must approve the sale has not selected that listed price. The seller picks it and uses it like bait for fishing - fishing for an offer to take to the bank to see if they will accept it. You know, since it is a short sale, that the listed price is not enough to pay off the loan in full so the bank must agree to it because they will lose money. By offering less than the list price you are making sure the bank will lose even more so they often don't accept the offered amount and often want more than the list price. Be ready for that, it is what usually happens and buyers don't understand why. It can also take months for you to get a reply back from the bank and if they feel the offer is to low they just ignore it and wait for better ones. This is why short sales are long and frustrating and there is no guarantee the bank will ever approve any offer
2 votes Thank Flag Link Sun Oct 13, 2013
Unfortunately none of us can say for sure what the lender may accept; however in order to determine a fair price review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there....
2 votes Thank Flag Link Sun Oct 13, 2013
I don't believe using a percentage off list price is a sound practice. You may still end up overpaying for the home. What if the list price is 20% above market? Ten percent below market would still put you above market.

What if the short sale is already heavily discounted? You might lose the house because you offered a very low amount.

Ask your agent to run comps showing recent sales of similar properties. This will give you a very good idea of the local market and allow you to make a good offer.

Good luck!
1 vote Thank Flag Link Sun Oct 13, 2013
Hi Masha,

I think the answers below hit your question and are correct. I would also suggest taking a look at comparable properties in the area and their sale prices. That will give you a better indication of what the bank may accept. You can check out comparable as well as sale price vs list price in your neighborhood.
1 vote Thank Flag Link Sun Oct 13, 2013
Masha,

I would be happy to analyze the property with a free comparable market analysis to give you an idea of what the home is worth and then give you more advice from there. If this sounds interesting, just call me (480) 414-3410 or email the address to me pattysellsaz@gmail.com
1 vote Thank Flag Link Sun Oct 13, 2013
Usually, Short Sales are priced below market value to entice buyers. If seller accepts the offer, it then will go to bank for final approval or a counter offer. This sometimes can take 30 days or longer. This property may have an accepted offer and may be taking back up offers as well.

Does it say bank approved? If so, that is what the bank will approve an offer at, but of course everything is negotiable.

Also, If the buyer finds another property during the approval process with the bank, and they want to make an offer on it, they can pull out of the first contract and move forward. If this happens, the property will be put back on the market as active and they will review any back up offers if those buyers still have an interest and the procedure starts again. That may be why it has been on the market for over 70 days if it truly is active. Let me know what the MLS number is and i can tell you what is going on with it.

If you are interested in purchasing a Short Sale or any property, it is best for me to do a market analysis for competitive pricing and other research on the property.

If you are interested in purchasing property in Scottsdale and/or surrounding areas, please let me know and thank you for the opportunity.

Terry Caskey
480-213-3676
Sonoran Premier Properties
http://www.terrycaskey.com
0 votes Thank Flag Link Mon Oct 14, 2013
Many agents leave their listings on the market even after they have submitted an offer to the bank. I think this is not a good practive because there are buyers like you thinking that these properties are still available when they are not.

In addition, a short sale is really a two part negotiation. You and the seller agree to a price, which really means nothing in my opinion, because the bank has to ultimately approve the sale price on their own terms. They negotiate with the seller for price and terms and if they can come to terms that you can also live with the sale will fly.

Many agents who list short sales think they can put any price on them and get them to sail through. This is not the case. Submitting offers too far off of market typically leads to banks rejecting offers all together or countering at prices that make buyers walk away. A good short sale agent prices the home close to market so that it has the best chances for an approval.

I work with many buyers and sellers in Scottsdale and am in my 13th year of full-time real estate. I am in the top 1% in our Company and Top 2% in the Arizona Regional Multiple Listing Service for Sales.

If I can help please let me knlow.

Best wishes.

Howard Rudin
WEST USA REALTY
602-390-8088
0 votes Thank Flag Link Sun Oct 13, 2013
It is too simplistic to gauge any offer against the listing price. The listing price may be too high or a low priced bargain. In addition, with a short sale the price may be preamp proved, or the listing agent may just be fishing for some offers to get the sale started. The best way to bid on a property is to understand the value of the property and the circumstances under which it is being sold. Then you can make an intelligent offer. Purchase price is not the only factor to consider if you want a successful sale.
0 votes Thank Flag Link Sun Oct 13, 2013
HI Masha,
Again, you have been given the correct answer by other agents, most who are not in the Scottsdale market.
I would be happy to run comps for you & advise you on what the market for the house looks like. I'd just need the address from you.
Our market is the best in the country & we don't have many short sales or foreclosures left, which is a good thing. Please keep in mind, that short sales still take months to close, so if you're looking to move out here anytime soon, I recommend looking for a conventional purchase.
Are you planning a trip out here? We could meet & I can show you homes.
You can contact me directly at mskhouses@aol.com
Hope to hear from you.
Merrill
0 votes Thank Flag Link Sun Oct 13, 2013
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