Home Buying in Griffin>Question Details

Elizabeth Go…, Home Buyer in Ellenwood, GA

cash sale

Asked by Elizabeth Goble, Ellenwood, GA Thu Jan 26, 2012

I am considering purchasing a home cash sale. On one of the listings I saw it had short sale pending. If I decided on this home would the short sale matter or would it be better to put a bid in anyway to see if I can get the home lower than what it is listed for.

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Hi Elizabeth,

If it is a short sale and it is 'pending', that means the seller has accepted an offer and it has been forwarded to their lender(s) for approval. You would have to have your Realtor contact the Listing Agent to see if they are accepting Backup Offers (in case the offer that has been submitted does not close).

As for what you should offer - don't base your offer price on list price. (Some Realtors list way too low just to generate offers which is not ethical but it is done). Have your Realtor do a Comparative Market Analysis (CMA) on the property using SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3-6 months. This will give you current market value and this is what you should base any offer price on, not on list price.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote Thank Flag Link Thu Jan 26, 2012
I have problems with trusting too much in CMAs. Like appraisals, they can be made to say various things. They may be no more accurate than the person making them. If a property is in the country or is very unique, put less credence in them. If the property is in a city and is similar to many others, they may be far more accurate.

Still, they are often free and are a whole lot better than on-line estimations. If you can get your hands on a recent appraisal, that is better though hard to do. Assessments, adjusted for 100%, can also be useful in some areas, misleading in others.
2 votes Thank Flag Link Thu Jan 26, 2012
I am not a Realtor but from what I have "seen"; it depends on the property in question. Some "Short Sales" are already "approved" by the lender and can close in a week. Some are just starting the process and will take a varied amount of time. But from what I have seen on the back end cash is always quicker.
1 vote Thank Flag Link Thu Jan 26, 2012
FYI
Most buyers do not realize, even at full price a bank may not accept a short sale offer. They are listed at a price no one knows if the bank will accept, or if they will "forgive" the debt. Unless it is a pre-approved short sale, which are rare.

I like the other agents question, have you spoken to your account and or a financial consultant? Many may argue with rates so low (below 4%) that it may make more sense for a buyer/investor to buy with a loan, put your cash investment into something else with a higher return of investment. Course, opinions vary on that, please talk to a CPA and financial consultant.
Last but not least, if you are and can buy a property for cash, Google Trustee Sale. Buy a property at the court house steps, you have to pay within 24 hrs but some of the "better" deals out there. Simply put, not a lot of people are in a position to buy properties for cash.

Best of luck.
Spirit
1 vote Thank Flag Link Thu Jan 26, 2012
Have you spoken to your Tax Advisor about doing a CASH purchase?

Understand that the Shortsale may take 5 to 12 months to omplete.

Understand that the LISTING PRICE might be a "nonsense" number, based on nothing more than a feeling by someone. Do not put too much credence in it.

To buy a Shortsale or an REO, you will need a Buyer's Agent to help you: Your Agent will do a CMA to determine the Market Value of the house. Depending upon the market in your area and the desirability of that house, you may run up against Multiple Offers, and that's when it can get nasty. Lean on your Agent.

Good luck and may God bless
1 vote Thank Flag Link Thu Jan 26, 2012
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