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Bulls23, Home Buyer in South Bend, IN

What is a good offer on a short sale that they are asking $160,000?

Asked by Bulls23, South Bend, IN Tue Feb 8, 2011

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8
Indiana Law does not allow a realtor to suggest a price to a client the best thing i could say is have a market analysis done on the property see how many bids are on it and go from there

for more info please contact me


Ralph Smith
GoldStar Realty
574 250 7253
ralph.smithhomes4sale@gmail.com
0 votes Thank Flag Link Thu Feb 10, 2011
Bulls23,

The list price isn't enough information for someone to tell you what a good offer is.

If you are not working with a realtor, I'd contact one right away to assist you in coming up with a price based on what the house should go for and from there determine what strategy you should use to determine your offer.

Make sure your buyer's agent represents you well in the transaction with this short sale as they can be tricky. Sometimes the list price will be well below what the bank will accept but the price is artificially low just so an offer can get to the bank and perhaps forestall the foreclosure proceedings.

Best of luck.
0 votes Thank Flag Link Thu Feb 10, 2011
As some of the other answers indicate, it depends on the house, recent (60 day) comparable solds and how much competition this listing has. It also depends on the bank that holds the mortgage. Some of them know the best approach is to price, and if the market doesnt respond, drop the price. They are losing money when they agree to the short sale and the longer they hold, the longer they stand to lose.

Another question to ask yourself is if you are ready to put up with the frustrations of seeing a short sale through to the end? The bank has all the marbles in their court. Even if you place an offer on the property, they may still allow other showings and offers to be submitted. They can take up to 30 days to give you an answer on your offer and you may wait that long and then find out your bid lost out to another and you are going to have to start looking again. These are also "as is, where is" the so it will be up to you to do any repairs needed to the home.

I work in the Elkhart/St Joseph county areas, if you have not selected an agent to help you through this process, I will be happy to answer any other questions and help to make this go as smoothly as possible.

Jody Jones
Realty Group Resources
574.214.2746 text or call
jjshomes4u@yahoo.com
0 votes Thank Flag Link Tue Feb 8, 2011
This is a tough question to answer without all the specifics. You need to contact your agent and have him or her do a market analysis for the area and see what has sold and for what prices. Once a CMA has been done take into consideration that many of the banks especially Bank of America short sales do not go past a certain percentage of the fair market value for a home. For example if a home FMV is $160,000 then your offer should be no less then $128,000 (if percentage is 80%). Again this is depending on the situation and the best person to help you is your real estate agent.
0 votes Thank Flag Link Tue Feb 8, 2011
Without knowing the specifics of the property, there is no way for us to know what a "good" offer is. It all depends on fair market value. Your agent needs to do a CMA (comparative market analysis) to see what other similar properties have sold for. Things to ask your agent: 1) are there any other offers on the property? (if there are, you want to make your offer as strong as possible). 2) what are the recent sold comps? (this will tell you if the asking price is reasonable, or high or low, and you base your offer on that.) and 3) how many lienholders are there? (it could be one or two mortgages, plus a mortgage insurance company, and maybe even an HOA). The more liens on the property, the more complicated it gets. More liens means more haggling over price, so each entity tries to get something out of it.

Keep in mind that the bank is taking a loss in this deal, so they want to net as much money as possible. The bank will look at your offer, do a BPO (broker price opinion) and may come back and say they want $XX more.
0 votes Thank Flag Link Tue Feb 8, 2011
A good offer would be something equal to or less than the house is worth. A listing price of $160,000 is no indication of the real value of the property; it could be worth more or less than that. Have a Realtor run a CMA on the property to help determine what it's worth. Then make an offer no higher than that figure.

Hope that helps.
0 votes Thank Flag Link Tue Feb 8, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Good Morning Bulls23
You should consult with a real estate agent to go over recent sales in the neighborhood of the short sale. In most cases, the bank will approve the offer if equals or is over the appraised value of the home. Your agent will help you determine this number.....which should be fairly close to the list price.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Feb 8, 2011
You should never base your offer on an asking price, you need to assess what the house is worth in todays market, in base your ofer on that. MAny times an agent will price the short sale below market value and your offer will have no chance of being accepted by the bank, if the agent has done their job, it will be priced right at market price and that is what the bank will accept in most cases, offerling less may lead your offer to be declined. You also need to check to make sure that asking price isnt too high and so you are making an offer based on facts and not just picking a number.

Please see my blog with a full list of tips and assistance on buying a short sale.
0 votes Thank Flag Link Tue Feb 8, 2011
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