Home Buying in Newbury Park>Question Details

kathypede, Home Buyer in Newbury Park, CA

On a short sale, can you offer less then the asking price?

Asked by kathypede, Newbury Park, CA Sun Feb 12, 2012

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7
Darla Dennis’ answer
Hello Kathy,
You can offer less than the asking price. However, the Lender holding the note on the property has the final say on the price. Sabrina explained it well. We work with short sales too. And the buyer ends up with more out of pocket expenses than they are expecting. The lenders do not approve most of the items that are negotiated on a regular sale, like termite repairs and home repairs. There are loans available to buyers to assist with these expenses. Be sure to use an agent and a lender that are well informed in the Short Sale process. Short sale is literally a short pay, which means that the owner cannot pay back the loan, and has defaulted. Therefore the lender is trying to negotiate a settlement between the owner and a buyer that will benefit the lender who owns the deed to the property.
Short sales can be a great opportunity, but be ready to hurry up and wait.
If you need further assistance, you may contact me, if you are not already working with an agent.
Web Reference: http://www.homesbydarla.com
0 votes Thank Flag Link Tue Aug 21, 2012
Kathy - you can always offer less than asking, but understand that the bank is going to have a net figure that they want in order to approve the short sale. The seller will still need to accept what you are offering to send to the bank for short sale approval. If it is not a fair offer based on the comps in the area, it is almost a waste of time. Be prepared to have to come up with additional funds even if you offer the full asking price. I say this because I work with short sales all day long and personally do all my own negotiations with the bank negotiators. I do not use a third party negotiator. There is a net amount the bank wants to get and they do not care if the offer is all cash or contingent on a loan. All they care about is the amount they will receive at the close of escrow. Feel free to contact me if you have any other questions and if you are not currently working with an agent, I'd be happy to assist you. I encourage you to visit my website and see the Testimonials from my clients.
0 votes Thank Flag Link Mon Feb 13, 2012
Kathypede,
You can offer less.
Keep in mind you need at least two approvals.
1. you need the seller to agree.
2. you need the sellers lender to agree.
Most short sale lenders are looking for market value or they will kill the deal.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@socalhomebuying.org
http://www.socalhomebuying.org
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Sun Feb 12, 2012
Yes you can. But what is happening in so many cases is after a few mos of waiting the short sale bank will counter back at close to market price.
0 votes Thank Flag Link Sun Feb 12, 2012
Yes you can offer whatever you want.
0 votes Thank Flag Link Sun Feb 12, 2012
You can offer whatever you like; however keep in mind that if a property is listed on target, or slightly below, multiple offers may occur; therefore review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests as to a fair offer, and go from there.
0 votes Thank Flag Link Sun Feb 12, 2012
Sure you can, but since the bank has not approved or suggested a price it is more than likely the bank will say no to even a full offered price. Understand the seller and their agent have magically dreamed up the listed price in hopes of getting someone to make an offer. Then they submit the offer to the bank to see "IF" they might approve it. Since the bank has not come up with the listed price they often counter back for more than list price or just ignore the offer altogether. Welcome to the wonderful world of short sales.
0 votes Thank Flag Link Sun Feb 12, 2012
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