Manuel A. Se…, Home Buyer in Clearwater Beach, FL

What % of the selling price would be reasonable for an offer in a short sale?

Asked by Manuel A. Seneriz, Clearwater Beach, FL Thu Oct 13, 2011

Help the community by answering this question:


Banks are going to go by market value if they are in a multiple offer situation, if you are the only offer try 80% of the sell price and they will counter your offer until they are satisfied.
Happens almost this way every time.
I've done a ton of short sales lately.
Hope this helps!
0 votes Thank Flag Link Thu Oct 13, 2011
First determine what you think the price should be. Do your research. If you are represented by a Realtor they will prepare a market analysis for you just as if they were listing the house. If not you are on your own. The appraiser's website will give you what's sold but not what condition they were in or what the current market offers that are comparable.

If the list price is reasonable offer full price. Your agent can find out how long it has been on the market and where they are in the short sale process. They may be able to find out what the bank will take. Yes, sometimes it is over the list price. Dealing with a bank is totally different than dealing with an individual. There is no emotion just facts and figures.
1 vote Thank Flag Link Thu Oct 13, 2011
Every situation is different and these are excellent answers. I would add that your agent will be invaluable to you in making a short sale offer because they will be able to analyze whether or not the listing agent is pricing the short sale per the comparables or is pricing it low to attract offers, which often results in the lender rejecting the offer.
0 votes Thank Flag Link Tue Jun 12, 2012

All good answers. I think Martha has highlighted most of the points. It is strictly do they (lender or lenders) lose the least amount of money. I strongly suggest you work with professional realtor who can do a market analysis and guide you through the process. Lenders are looking to get closer and closer to market value. If an agent lists a property low to get action, even a full price offer will not be accepted. The lender will do their own appraisal or market analysis too. You need to understand up front the time process and the realistic expectations.

Your agent should check to see how many loans are on the property. The more liens the less chances of closing. Even if there is only one loan...remember back when all the loans were being split and sold in various portfilios....well that means one loan could be owned by several investors now and each investor must agree. This is part of what takes the short sale negotiator so long. Also you want you agent to check and make sure the owner qualifies and has filed a hardship letter. A seller can't just sell short because their home is worth less than they owe. Their must be a hardship and they need to supply the supporting financial evidence that they don't have other sources to cover the payment.

If you have time contraints, then a short sale is not for you! Expect and average of 6 months. Some are less and some are more. Most lenders want a commitment from the Buyer of 120 days for an answer though 45 is the minimum they want to see on the addednum. This is just the first lender, then the process begins with each additional lien holder. Often by the time you get the last lien holder's agreement the first has expired and needs to be re-negotiatied.

Sit down and discuss the pros and pitfalls with your Realtor to see if Short Sales are an option for you. Then don't limit yourself to only short sales. Figure out what you want in a home and look at all your options. Sometimes the best value is an estate sale or just a really motivated seller who has equity in their home.

I feel an informed client makes the best decisions regarding their real estate needs. Let me know if I can be of assistance.


Pam Cohn
Broker Associate, GRI, SFR, NHS
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
2539 Countryside Blvd #3 Clearwater, FL 33761
0 votes Thank Flag Link Sun Oct 16, 2011
Manuel there is NO specific percentage you should use off of a sales price, you need to assess what the house is worth in todays market and base your offer on that, it is common for inexpreienced gents to pirce a new short sale much lower than market value to attract buyers which often leads to straight out denial to a counter offer if the buyer is lucky.…

Please see my blog for tips on buying a short sale
Web Reference:
0 votes Thank Flag Link Thu Oct 13, 2011

I don't like my buiyers to pay that extra money to the attorney or some service but if the price is right (including the fee) what difference does it make? There are times when there is no choice if the buyer really wants the property.
0 votes Thank Flag Link Thu Oct 13, 2011

All good answers here, but let me add that you want to make sure the seller isn't asking you to "contribute" to paying the short sale negotiator they hired. Make sure this is mentioned in a separate addendum or on the short sale addendum when you submit an offer.

David Barr, Broker Associate
Sandals Realty
941.870.0656 direct
Twitter: @sarasota_homes
0 votes Thank Flag Link Thu Oct 13, 2011
Good Afternoon Manuel

It really depends on where they are in the short sale process. The bank may not even take what it is listed for on the market. The seller and his agent often lower the price until they get an offer and then the short sale process begins. I have seen on several short sales that it is listed for one price and the bank counters at 20% higher. The best offer price is one that is in line with what other similar properties in the are have sold for in recent months because that is what the bank is going to compare all offers to when responding. I hope that help would be glad to discus more or even to a market analysis for you if you would like me too. My office is on the beach and in fact just finished a walk on the beach doing a little business.

Have a great day

Doug Bevis
Coldwell Banker
468 Mandalay Avenue
Top Producer
2011 Million Dollar Club
813-310-4454 (cell)
0 votes Thank Flag Link Thu Oct 13, 2011
If you really want the property, offer full price. If everything was done correctly on the listing side(really big ? these days), the lien holder has said they will take THAT price.
If you feel you must make an offer, stay within 5% of the asking price. The lien holder may take less but by doing that you wil complicating an already complex , long drawn out transaction and there is a really good chance that you will not get the property and will have wasted valuable time and gained nothing.
With today's interests rates as low as they are, each 1,000 will cost you lessthan $5 dollars more a month in your payment.
People are being penny wise and pound foolish. A home that sold for 200K, short selling for 159K with a tax value of 200K, and they are offering in the 140K's, they are losing a very good deal for about $50 or $100 per month, They wind up losing about $41,000 in value over this small amount per month.
Ask yourself, if you were the seller and lien holder, what would you do?
0 votes Thank Flag Link Thu Oct 13, 2011
In the short sale bank loses money.CMA will give you a idea about reasonal offer.You may talk to your agent about that.Good luck
0 votes Thank Flag Link Thu Oct 13, 2011
On a short sale the bank is already taking a loss. Trust you have a good Realtor. Base your offer on what similar properties sold in the area. It will probably be close to listed price. It has to be close to the BPO anyway, because that's what the banks will look at.
Good Luck!
Genevieve Ramachandran
0 votes Thank Flag Link Thu Oct 13, 2011
Reasonable is a perception. Depends on the market and locality. One might view a home to be great and will pay full, even more than asking, while some will think they can get a great discount due to repairs and such. Even the selling price that is listed isn't an indication of what the market will bear. Some agents will list the home lower than normal to attract buyers.

Best thing to do is to solicit the advise of a local agent that knows the market.
0 votes Thank Flag Link Thu Oct 13, 2011
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