Home Buying in 40165>Question Details

Christi, Home Buyer in Shepherdsville, KY

Short sale home priced at 99,000. I offered the the bank 88,000. The listing agent told me bank said they would consider 94 to 100000 whats this mean?

Asked by Christi, Shepherdsville, KY Fri Oct 26, 2012

The listing agent is also my buying agent.. is this a good or bad idea? Why didnt the bank not come back with a exact amount to counter offer and why a 6,000 dollar range knowing that i would offer the 94000?... also is it true the banks will not pay closing cost for short sales?

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Christi,
The listing agent represents the seller. Their job is to protect the seller and minimize their exposure should the lender pursue a deficiency judgment, coming back to the seller for the losses taken by the bank.
I would encourage you to get your own agent who can give you an independent idea of the market value of the home in its present condition and to help you with this. Your agent should be knowledgeable about short sales and should make you aware of other homes to consider too. Short sales are long and often frustrating. Make sure you are well informed and well represented before you proceed.
Closing costs can be included in an offer, but it's basically another discount. If your offer was $84000 with $4000 toward your allowable closing costs, it's the same thing as an offer of $80,000. If the house is priced right, an offer of $105,000 with $6,000 in closing costs would represent a full price ($99,000) offer. Your own agent can work with you and get you the best structure to meet your goals.
0 votes Thank Flag Link Fri Oct 26, 2012
What's it mean?

The bank won't consider offers below $94,000.

The listing agent is also your agent. No, he/she isn't. The agent is either the bank's agent or acting as a dual agent. In no case is the bank's agent your agent.

Good idea or bad? Bad.

Why didn't the bank make a specific counter offer? Because their decision depends on your offer and your qualifications. If you have great credit and are willing to put 20% down, you might pick it up for $94,000. If you have weak credit and are planning on FHA financing, expect the bank to be looking for at an offer of $100,000.

Hope that helps.
0 votes Thank Flag Link Fri Oct 26, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
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