Home Buying in San Jose>Question Details

Wing, Home Buyer in San Jose, CA

Can I offer a short sell or bank-owned home 20-30% less than the asking price? If not, so what is the

Asked by Wing, San Jose, CA Wed Jul 9, 2008

reasonable price to offer?

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9
Wing,
I have represented buyers to purchase both short sell and bank own homes.
There is no exactly formula to follow. You need to talk with an experience real estate agents who has done quite a deals to help you. The price is very important and how to structure an offer will be another key.
0 votes Thank Flag Link Sat Jul 12, 2008
You can offer anything you wish to offer, no specialized realtors needed on this one either, Simply send in a purchase agreement, use a realtor if needed, to the property owner or bank.

The worst that can happen is that your rejected, If that happens increase the price to you get accepted. no different than any other purchase!
0 votes Thank Flag Link Thu Jul 10, 2008
There is a substantial difference between a "Short Sale" transaction and a Bank owned property, called an REO. Your question, as you can see from the other answers you have received, is not an easy one to answer in this format. The strategy is different as to each of them. The short answer to your question is: "it depends". It depends on what the asking price is, the condition of the house, the comparable recent sales ("comps"--comps are only PART of the equation), and other factors. Your question is really asking "what is the best negotiation strategy. The expertise in negotiation comes from years of experience and a certain "knack" for negotiations. It is part learnable and part "art" or talent for it. My husband, an attorney and Real Estate Broker and I hold, or participate in, seminars on Short Sales and REO's for Buyers. If you are interested in attending one of them, call 408-893-6306 to register. All your questions can be answered there.
0 votes Thank Flag Link Thu Jul 10, 2008
Hi Wing,
This is Allyson, I answered your other question on short sales. There is no formula or percentage of the offer that works, Real Estate is bought and sold on demand. Earlier in the year when the market was slow ( demand low ) you could offer much less and ask for some closing costs and GET IT. Now most Reo's that are a good to great value have more than one offer on them ( demand high ) and are going for over asking price. So for Reo's if its in a good location and a good value you MUST act quickly as it will sell before you have a chance to act.
I am local so understand the market in the San Jose area very well.
I have a Free Reo property search on my web site that will update you when new listings come on the market so you can act quickly.
If you would like a free Reo search or if you have any addtional questions call or email me at (408) 705-6578 or allyson@homesbyallyson.com
Sincerely,
Allyson
0 votes Thank Flag Link Thu Jul 10, 2008
Wing,
Your question is a general question and cannot be answered accurately. In order to find your answer, your Realtor must do his/her homework. (S)he need to know the house, in and out; must know the recent comps (in and out), days on the market, amount of money the bank is vested in the property, ....

Hope this helps!
0 votes Thank Flag Link Thu Jul 10, 2008
p.s. make sure you have an agent representing you, please. if you need a referral to an agent, contact me directly vchrisner@kw.com. I am happy to guide you.
0 votes Thank Flag Link Thu Jul 10, 2008
again - you can offer anything. it won't necessarily be accepted. read the blog post, it may help you.
0 votes Thank Flag Link Wed Jul 9, 2008
It really depends on a few factors. 1. The lender and 2. Days on the Market. The lender determines what will be an acceptable offer. The amount of days on the market will open opportunities for negotiation.
Can’t afford your home? You need a Short Sale Specialist Team!
Sandra Diaz-Kelly and Mark Dwelle are here to help.
We have teamed up with to help those in default situations negotiate a short sale of their home with the lender. Ask about how we can help you with your short sale and get you 15.5%* CASH back after closing.
Call 925-895-2231 or email us at sandradkelly@yahoo.com
0 votes Thank Flag Link Wed Jul 9, 2008
You could offer whatever amount you might want but the question is that will they accept it. You need to check with your agent what are the comps in the area (comparables: what recently sold in area). You also need to understand that it is better to make a offer on an bank-owned property because this are properties they want to liquidate as soon as possible with a reasonable offer. The short sale takes longer to close and response time from the bank is longer too and a low rate of closing the deal/sale. You would be able to discern the reasonable offer depending on the area and the comps.
0 votes Thank Flag Link Wed Jul 9, 2008
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