Home Buying in Jacksonville>Question Details

Tara, Home Buyer in Jacksonville, FL

If a price is listed as short sale, what do you offer?

Asked by Tara, Jacksonville, FL Tue Nov 27, 2007

If a home is listed as a short sale for $400,000- what is the general offered amount? Asking price, 10% lower, more?

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6
What are you willing to pay? Do you want the home or not? I'd offer 20% less than the appraised value. Be prepared to wait for a while for a response...lenders aren't always in a hurry.
1 vote Thank Flag Link Tue Nov 27, 2007
Short sales are typically listed below market value to sell fast to prevent foreclosure. A short sale is generally a good deal. The Bank is the responsible party in this transaction and typically accepts multiple offers.
If you are going to make an offer and realize that you are already getting a good deal, go ahead an make your best offer because you might only get one shot.
0 votes Thank Flag Link Sat Apr 26, 2008
If the home is listed for $400,000 The BPO effects everything. I would start my offer at 80% of the BPO.

I just did a short sale, where the bpo was at $310k and sold the house for $275k Not the deal of the year
but a fair deal for both sides. The bank never countered they immediately accepted.

Try to find out from the other Agent what the BPO (Broker Price Opinion) came in at.

Depending on who the bank is they are typically accepting 80% to 90% of that bpo.

Also, Remember you are looking at buying a preforeclosure because you want a deal I suppose.
Don't let your emotions get involved. Set your offer price, if it doesn't work move on to the next home.
0 votes Thank Flag Link Sat Apr 19, 2008
Tara,
There is no standard for what you should offer. Being a short sale you know that the price is less than is owed but isn't neccessarily what the market value of the house is. It still could be high. If you want to give a lowball offer, have your realtor run comps for the property to support your offer. Also, if possible, have your realtor take pictures of the property from less flatering angles to help support the offer. If you don't have a realtor I strongly suggest you get one and ideally one that has experience with short sales. Our office has had several short sales recently where the banks appraisal was higher than the asking price and we were able to get them to accept our offer for below asking price by doing what I just described. Also make sure that you are already pre-approved for a loan that will cover your offer (or letter from your bank stating you have enough funds for a cash deal). The more you can show you are a ready, willing and able buyer making an honest offer, and not just someone fishing for a deal, the better your chances. It still may take awhile for the bank to respond, but all this helps to speed up the process.

Good luck!
0 votes Thank Flag Link Tue Nov 27, 2007
There is no standard asking price. Ultimately, a home will sell for what it is worth - regardless of the market and regardless of the sale conditions. You must also remember that the bank that is getting the short sale will want as much as it can get, and will not even look at super low ball offers.
Offer what you think is fair for you and see what happens! :)
Web Reference: http://www.wagneriteam.com
0 votes Thank Flag Link Tue Nov 27, 2007
Ask your realtor to look into what was actually paid for the home. Also have them do a comparative market analysis--the bank appraiser already knows this, but you won't know unless you have a realtor do it, and most realtors will be willing to help you gain information--if they assist you, they should be compensated with commission from the sale. If the property is already priced competitively with recent sales, the bank will be less willing to settle for considerably less.
Web Reference: http://www.myketriebold.com
0 votes Thank Flag Link Tue Nov 27, 2007
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