Good question. You can pretty much assume everything is open to negotiation. Maybe the short sale was approved for another buyer and they walked which prompted the bank to do a new valuation. Maybe the short sale was never approved.... did your agent actually request the approval letter from the lsiting aget to verify it was actually approved?
So you are here now negotiating... $5,000 is probably not something to haggle with for a property that costs $435K. It will pobably raise your mortgage monthly payment by a few bucks... I would just go for it if you love the house... however if you love getting the best deal and are willing to lose the chance at getting this house, then engage in the counter-offering!. :)
Best of luck to you, and if you find my answer helpful, please give it a thumbs up.
They may be thinking that the market is getting better and they will get more money.
If the house is in perfect condition in a great neighborhood, they may be right.
This is now about negotiations. Your buyer broker needs to step up and work for you making the bank realize that your offer is the bomb!
If you are being represented by the listings agent, get yourself your own agent if you want the house.
If your agent is not cutting it, ask to talk to their broker for assistance.
here is a bit of insight on a few things regarding your situation. With short-sales there is no "set price " set in stone, What was approved at $429k was okay for the bank ( investor) at THAT TIME to take. If is was a approved price for your contract at $429 then to change it afterwards is a breach as it was valid contract both parties agreed to
. However, if 429 was what the lender got agreemeet on from the investor as a price - then you give an offer at 435, they can do a re-appraisal to see if it is a good offer or not, and to see if the market value has changed since nothing was agreed upon in writing prior ==they have that liberty to do so. Now they countered at 448 because similar properties near that house were sold for higher amounts...thus the market value of this particular property changed and they are hoping to get more money. They can do that.
However, short sale is a negotiation process, and often times they will come back higher hoping you will raise your offer, or the negoitator is trying to establish a " track record" of showing the investor he Tried to get a higher offer but the buyer didn't budge so he can show evidence ( paper trail ) that he was doing his best to get the higher price.
So with that, as you can see they countered back at $435..........it shows they are willing to come down, you can hold steady at 430 .............. or go 431 or somthing small and she what they come back at ...............but to answer your qustion they are allowed to do that if there was no approvaed purchase contract ---let me know if that answer your Q ? thanks Guy
It sounds misleading, "Bank Approved." Legally the bank is not the owner unless they execute a foreclosure and sell it on their own. In short sale, the actual owner is trying to mitigate hardship by working with the lender to sell the property at the current market value. Negotiate your offer, or accept their counter offer and wait until your appraisal comes in; it may come lower or higher.
Do you have an agent?
Have a blessed day,
It sounds like For A Previous buyer, the bank had approved a purchase price of $429K. Just because the bank approved that price for 1 buyer, doesn't mean they'll still take that price if they think they can get more from another.
It does work very very well in your favor, however. You see, the bank DOES want to do the short sale & in this price range it will still be more costly for the bank to take this home to auction or revert it back to them over their perceived value being even $19K more, which is why they dropped their counter price to you, to $435K.
Countering with BofA is NOT like countering with Mr. HasEquity Smith, BofA can take weeks if not another whole month to go back & forth on price. If this were my deal, I'd tell you to just take it at $435K, it's much better than $448K & get on with your closing while you can lock in your low rate & close ASAP.
Shoot me an email directly if you want to talk about this some more. I don't look back on this same Trulia thread for answers posted after mine.
Realtor Since 1996
Main Street Realtors
Short Sale Expert
If you love the house and think it's a market price deal, especially if your loan is approved by now, remind it to the lender and they I'll not let you go that easy.
Good luck !
The bank will do whatever they can to recoup the losses. The negotiator job is to work a 3 way deal between you, the owner and the bank. Since your appraisal came in over asking the investors that oversee all deals make the judgement call to raise the price. What is the current condition of the house? Have you done inspections?