Home Buying in 07407>Question Details

Ksfrakes, Renter in

looking to buy a home in Elmwood Park NJ. listed for 199K short sale. What would be a resonable price to offer? loan is FHA for 190K i can put 5-20%

Asked by Ksfrakes, Fri Aug 3, 2012

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I'd be happy to show you comparable sales.

The selling bank will do a BPO or an appraisal so it is best to have an educated offer.

So you don't waist your time.

Every bank is different some may sell for %20 less some want full market value.

Condition of the home will play a big part in price.

let me know if I can help
0 votes Thank Flag Link Thu Aug 9, 2012
Congratulations on finding a home and in helping a homeowner avoid foreclosure! When considering placing an offer on a short sale listing, bear in mind the final approval comes from the lender vs. the homeowner. You have to feel comfortable with your final offer and take several things into consideration prior to submitting your offer: condition of the home vs. other listings for sale, price on current home as it compares to other listings on the market. If it is already priced below market value, then you have found a gem! If you're working with a realtor, ask them to run a comparable analysis for current active, under contract and recent solds in the last 3-6 months. Be fair and above all, be comfortable with what you can afford! If you need help on short sale purchases or any other questions, feel free to call 973-723-2005. Good luck!
0 votes Thank Flag Link Sat Aug 4, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Fri Aug 3, 2012
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