Home Buying in Lutz>Question Details

Rbgilland@ya…, Both Buyer and Seller in 40245

Which is better? Make an offer and pay my own closing costs, or make an offer higher and ask them to pay? It's an approved short sale.

Asked by Rbgilland@yahoo.com, 40245 Fri Feb 8, 2013

Either way I will offer more than their asking price to hedge my bet. It's been a nightmare bidding on homes.

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Is it an approved short-sale or a "price approved short-sale". They are very different animals.
An approved SS is simply a home where the bank already told the owner that they can sell via SS, but the advertised priced and conditions have not been determined or accepted. On a Price approved SS the price has been stablished and it is definite. You can offer above that amount what ever you want to get back in closing cost and it will likely be accepted. Also in the Price approved SS they tell you if there are any other liens, or circumstances that must take place for the sale to complete. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
La Rosa Realty
0 votes Thank Flag Link Sat Feb 9, 2013
If it's an "approved short sale" ask your agent to contact the listing Realtor to find out if the "approval letter" SPECIFICIALLY ALLOWS closing costs. Typically short sales will allow up to 3% for closing costs but not always.

Also before you put a lot of thought into it, ask your agent to contact the listing Realtor to see if they will consider an offer that is not ALL CASH. We have ALL CASH buyers lining up to buy almost any property ABOVE market value so you may not have much chance at buying unless you buy a Fannie Mae, Freddie Mac or HUD owned foreclosure that will not make you compete with investors for the first 10 to 14 days.
0 votes Thank Flag Link Fri Feb 8, 2013
Since you are financing the property and you are bidding on a short sale - pay for your own closing costs. First short sales are notoriously harder to appraise for banks. Many bank appraisers will aim low on short sales which would cause financing issues. Secondly, some third party lenders will not allow closing costs to buyers even if its above asking. Don't ask me why - but I have seen it before. Its always best to keep your offers as clean as possible when dealing with third party short sales or bank-owned property.
0 votes Thank Flag Link Fri Feb 8, 2013
as the realtor states below, your realtor should be giving you all this info and how to bid on properties in this market.

good luck,

Bill Szydlowski
813-323-4443
0 votes Thank Flag Link Fri Feb 8, 2013
Honestly, it really depends on the situation and the seller, so you never really know. The final number is the most important, so if you are going to end up with the same bottom line, it may not matter.

If the seller is a bank, the less you ask from them, the better, so I would just say to offer the lower amount with no closing costs.

If you are working with a Realtor, you should really ask them. They should know the situation a bit better and know who the seller is and what they prefer. I have asked the seller's agent that a few times before, so we don't waste our time writing an offer that will get rejected in the end.

Good luck to you and I hope you get the home!

Marie Barakat
Coldwell Banker Residential
mbarakat337@yahoo.com
(813) 992-1217
0 votes Thank Flag Link Fri Feb 8, 2013
Yes there's a lot of competition against investors out there right now. You want your offer to be strong to beat them out - so the fewer things you ask for in the contract, the better.

That said, it depends on the lender, but often times in a short sale scenario - the lender may only pay up to 3% in closing costs, if at all. So if you really feel you need them - bump up your offer by 3% too.

Liane Jamason, REALTOR
Smith & Associates Real Estate
813-486-4997 cell
0 votes Thank Flag Link Fri Feb 8, 2013
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