Cowchick1000, Home Buyer in Santa Clarita, CA

We are the back up offer on a approved short sale and our offer is 20K higher than the offer that the bank is currently working with.

Asked by Cowchick1000, Santa Clarita, CA Sat May 7, 2011

Our offer is the rock bottom $$$ that the bank will accept on this short sale that is why our offer is 20K higher than the offer the bank is working with. The buyers want an appraisal done to hopefully get he bank to negotiate the price closer to their offer. If the bank has already said this is the absolute rock bottom price we will take on this house will an appraisal affect anything? The current buyer has already stated that they are not willing to budge on their offer not a single $.

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The reason why I know so much about the other buyers is because we are friends with the owners in-laws and only found out that he was the owner after we put in our offer. Now since he (the owner) already signed off on the 1st offer and it was sent to the bank we have to wait around for the buyers do what ever it is they are gonna do. The owner is telling us all this information that he is getting from his realtor. Also, our realtors are friends. Now with that being said do you think a buyers appraisal will lower the banks price 20K?
0 votes Thank Flag Link Sat May 7, 2011
Cowchick,
Based on your description one of 3 things are likely to happen.
1. Most desirable to you is that the first buyer believes the bank and goes away clearing the way for you to buy the home.
2. It's also possible the bank and the first buyer moderate their positions and come to terms, leaving you out. Many negotiations stay at a standoff for a while until someone blinks, and then acceptable grounds are found.
3. Finally the home could just end up in foreclosure. If this happens you may be able to buy it at auction for less than your offer price, but you'll need to be prepared to qualify to buy at an auction.
If I were the listing agent, in a situation as you describe, I would be pushing the first offer to come up to match your offer, the price the bank has approved, or to move out of the way. I believe it’s generally in the seller’s best interest to complete the short sale for the highest price possible to limit any exposure my seller will have. Hopefully the listing agent feels the same way.
0 votes Thank Flag Link Sat May 7, 2011
You know an awful lot about the other buyers and I wonder who the agents are working for in your transaction. Seems like a lot of bedroom talk going on, but .......

The bank usually does an appraisal, or BPO, when an offer is presented to determine the value that day in the market. I doubt that the bank will pay $350 to have a full appraisal done so unless the buyers want to I doubt one will be done. They might ask for another BPO to check the price with another Realtor and then make a decision. What I don't understand is if they are still haggling over the price I can't imagine they have a contract that is fully agreed to and so there is no need of a 2nd position offer (or backup as you call it). Why can't the bank accept your offer as the primary?
0 votes Thank Flag Link Sat May 7, 2011
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