Barb, Home Buyer in Alameda, CA

How to calculate how much to offer on a short sale.?

Asked by Barb, Alameda, CA Sun Jun 17, 2012

The current short sale asking purchase price is $99,900. In 2009 it sold for $53,500. It was rehabbed in 2009. Do you think an offer of $100K will be accepted?

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Answers

5
As has been said, it all depends on the comparable sales and what the value is in today's market.

Consider then the competitive market we are in, and offer accordingly. Even short sales are receiving mulitple offers very quickly.

But on a short sale be prepared that, even if you are not selected as the buyer submitted for the short sale approval, you may be contacted later if the first buyer walked. Have your agent keep in contact with the listing agent. By the time the seller's lender approves the sale, the first buyer might be gone, and the lender may have responded with what price would be acceptable.

That's all to say, make your best (educated) offer that you can, but if you're not accepted at first, don't give up on it until it's actually SOLD, or you've bought another property.
0 votes Thank Flag Link Tue Jun 19, 2012
Lenders determine the price they will accept by reviewing the BPOs (Broker Price Opinions), the offers on the property, the time on the market, and sometimes the condition of the property. Lenders seem to be willing to accept prices a little under normal market if there are no higher offers. I have been getting short sales through at about 10 to 15% under market.
0 votes Thank Flag Link Mon Jun 18, 2012
Have your agent show you the comps in your area but be prepared to offer asking price or slightly over if there are multiple offers.
Have any questions please feel free to contact me
website http://www.hcox.golyon.com
email hcox@golyon.com
0 votes Thank Flag Link Mon Jun 18, 2012
Definitely need to know what the compatables are. If there are no other offers you can usually offer 2-5% under market value but be prepared to pay market value. If the seller signs off on your offer you still need the bank to approve it. They send out their own appraiser to find out what it's worth.
Good luck
0 votes Thank Flag Link Sun Jun 17, 2012
The asking price means nothing if it's not based on the comparable sales. You need to review the comparable sales. If you have an agent, ask your agent to show you the comparable sales.

Elizabeth Weintraub
Broker-Associate #00697006
Lyon Real Estate's #1 Short Sale Agent for 2011
0 votes Thank Flag Link Sun Jun 17, 2012
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