All these answers are good. The main thing to remember when you are buying a short sale: It is a Pre Foreclosure and you will be buying it AS IS. Youâ€™re Real Estate Agent or Realtor should be doing the leg work on this, running the comps, doing a BPO etc to see what the true value is. Then he can make his own estimate of work costs that need to be done to come up with your offer. All that needs to be submitted with your offer.
Now, when we list homes as short sales there is a huge amount of paperwork that we need to get done and submitted to the bank. One of these forms is a Repair Checklist, documenting what repairs need or should be done to the subject property. The problem is that if the listing agent did not supply the bank with the Repair Checklist the bank assumes the property is AOK. The banks (usually) are not local and will not see the property. They will eventually send out for an appraisal, once they have a reasonable offer.
I am not a Short Sale expert, I have done several and I am still working on a few and if someone says they are a Short Sale expert, run as fast as you can away. In this market the banks change the rules like the weather in New England. :)
Be Careful, Be informed and be represented
Mary, I didn't notice your last question. Ask your Realtor if what you offered originally was a Fair Market Value offer or close to. If it is, then I wouldn't recommend going any higher. If not, I would have to run the numbers to see what it is really worth, so there are many variables here that won't allow me to give you a solid answer, BUT I would wonder why you want to prove it is worth less, by sending in repair pics and quotes, and then offer more then the original offer. You just played right in to the banks game. Good Luck
My husband and I do not NEED to move, we have all the time in the world.
I have a realtor who has been up the listing agents @$$ for 2 months. The listing agent seems unmotivated, and the bank seems even less motivated.
When the house was ORGINALLY listed and appraised, it had a hot tub, new appliances and an actual patio wall. The owners ripped out all three and took them with them. I'm not even sure the bank is aware of this, again the listing agents motivation.
We would love to get another BPO to support what the house is like now, not when it was in top condition.
The bank is basing their case strictly on comps from the area. Of course those houses are move in ready and this one is not.
I'm almost certain the listing agent has not given the bank any idea what kind of repairs this house needs. While cosmetic in nature, still is going to cost a buyer 10k to 20k out of pocket.
Should I just wait and try again once it's actually a foreclosure? We're so frustrated with the whole process we don't care if we get the house or not. We did fall in love with it but we're not stupid enough to pay top dollar for this house (or any house in this kind of market!)
Now for Marys' question. I would agree with Jeff, they won't take a CD. If you Realtor is the listing agent, he should know how to get around this simple dilema, if he is not, then you really have a problem, as it is the listing agents job to straighten this out. The BPO has probably been completed and that is what they based their net off of. Problem with a BPO is that the people doing them, are hoping to get the listing if it isn't short sold, so they may "bump" the number a bit. If your agent is the listing agent, he CAN solve this.
There may be an all cash, as-is offer already submitted as well. When lenders are sellers or approving a short-sale, they really do not care much about the condition of the property- they just want to get it off thier books and move on.
IF, there are no other offers, your plan to show the needed repairs could work. By now, the lender mostlikely has a recent appraisal on hand and a BPO [Broker Price Opinion], they already know what the market will bear.
If you can come up with recently sold comps that support you position it would be most beneficial to present these as well
Be prepared to hear they have taken the overall condition of the home into consideration when determining their asking price.
The "Eckler Team"