Home Buying in Waterbury>Question Details

Kathy, Home Buyer in Waterbury, CT

there is a house that is a short sale. can i offer less?

Asked by Kathy, Waterbury, CT Tue Apr 12, 2011

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9
Yes you can offer less but if the house is already listed way below market value, which it probably already is), don't expect your offer to be accepted by the lender. Too many buyers assume that because a home is a short sale listing, they can offer whatever they want. To help determine market value, work with a real estate agent that will represent you. Good luck.
0 votes Thank Flag Link Sat May 7, 2011
Short sales pricing is never set by the bank. It is arbitrarily set by agent and seller and because of the nature of it being "short" the asking price is likely already below what the loan amount is.

More important that bidding down or up the asking price on a short sale, you are advised to compare market value to amount short. If it's a great deal, but amount short is too much for lender to approve (or if more than one lender) you may want to avoid the property altogether.

You can generally find amount owed by searching tax records or some of the feeder sites.

Good luck.
Terry
0 votes Thank Flag Link Thu Apr 14, 2011
Short sales are quite tricky. You can of course always offer less but remember, the offer can either get accepted or rejected.
0 votes Thank Flag Link Thu Apr 14, 2011
Dear Kathy,

You can offer what you feel is right for you. Also, know your comparables as the lender for the short sale will do their homework and you should also do yours. Good Luck!

Susan Penn, PA, SFR
EWM Realtor
2000 Main Street
Weston, FL 33326
954-557-5993
penn.s@ewm.com
0 votes Thank Flag Link Thu Apr 14, 2011
Hi Kathy, there is always room for negotiation with a short sale and the remarks the other agents mentioned and the way your offer is presented definitely plays a factor. I actually had several successful short sale transactions that closed already this year. I would be more than happy to assist you with this property or any others if you are not already working with another agent. I am also very knowledgable with distressed properties. Hope to hear from you, Julie

Julie Lucia, Realtor
Showcase Realty
203-578-5631 cell
julie@julierealestate.com
0 votes Thank Flag Link Thu Apr 14, 2011
The first thing to do is get what the market value of the property is. Usually if it's a short sale then the list price is at or just below the going market price. Use that as a gauge to determine what kind of offer to make and keep in mind it's not the owner of the property you have to entice, it's the owner's bank and the bank will be looking for the price offer that is highest and best submitted.
0 votes Thank Flag Link Tue Apr 12, 2011
The answer to your question depends on several things: 1. If you have an agent, do the comparable sales indicate that you should offer less? 2. Does the listing information indicate that it is an approved short sale? 3. Are you offering less because that is the limit that your loan officer has approved you for? 4. Do you really want the house?

Each answer may, or may not be, contingent upon your answer to the preceding question, depending on how you answer it. For example, you may answer #4 Yes, #3 Yes, only approved for x amount lower than the listing price. Now, here's where it gets tough: #2 if the shortsale is already approved, then the bank is looking for an offer usually not less than the listing price. If the short sale is not approved, then it may be possible that the bank will accept a short sale offer at less than the listing price, if #1 the comparable sales of homes indicates that it is worth less than asking price.

These are, of course, all questions that your agent (if you have one) should be asking you and providing you with guidance on.
0 votes Thank Flag Link Tue Apr 12, 2011
In order to establish a fair offer, review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there--keep in mind that if a property is listed on target, or slightly below today's market, multiple offers may occur.
0 votes Thank Flag Link Tue Apr 12, 2011
You can offer less if you like. Your agent should provide you with recent comparable sales in the area to help you make a decision.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Tue Apr 12, 2011
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