Home Buying in Minneapolis>Question Details

J.d., Home Buyer in Minneapolis, MN

What should we offer on a short sale in Minneapolis? The house is listed at 130k, but sold in 2006 for

Asked by J.d., Minneapolis, MN Thu Apr 24, 2008

212k. The listing states that a short sale has been approved by the bank, and that its not your typical short sale response time. What does that mean? Do you think the bank will accept a lower offer , or ...? Or did they just list the house very low so that people would take interest, but with no intentions of actually selling it at that price range? (Its happened to me before. What a waste of time!)

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With the recent activity in short sales and foreclosures, a new business has begun, "pre-negotiating short sales". There are people and actually companies that pre-negotiate a short sale and then list it for sale at that price or at a price that includes their fee.

As with any sale, you should do your homework. If the price is attractrive, you can make an offer. As far as getting it for even less, that depends of the nature of the deal. If the property has been negotiated down to the lowest level, this may be the best price that you can expect to get. It all depends on the situation. A "deal" isn't a "deal" unless you are able to get the property under the market value. We have seen that properties that either are in foreclosure or in a short sale situation sell for far less than a typical home for sale.
0 votes Thank Flag Link Wed May 7, 2008
J.D., what has your Realtor suggested? If you have a qualified professional working for you, they must have some recommendation. All transaction and homes are different and to broadly answer on here would be doing you a disservice.

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Sun Apr 27, 2008
thanks for all the helpful info!
0 votes Thank Flag Link Fri Apr 25, 2008
Hi J.D. - you've gotten some good responses below. No one can give you solid advice on an offer without seeing the house, knowing your needs, and having knowledge of your pre-approval status/special loan programs. On a short sale, as opposed to a foreclosure, you should receive copies of the seller's disclosures filled out by someone who has actually lived in the property, unless it is an estate or an investor owned home. Seeing the disclosures and knowing the defects can help guide you in making an offer. Also, be sure you have received a copy of the truth in sale of housing report required by the city. There are additional considerations a Realtor representing you can address, like values of similar homes in the area. Best of luck!
Web Reference: http://www.ShawnaGibson.com
0 votes Thank Flag Link Fri Apr 25, 2008
What it means when they say its a pre approved short sale is that the bank has already done most of the work needed to approve the short sale (where the bank takes less than they are owed) so any offer should be responded to quickly (will still probably take a week or so). The bank probably has approved the 130k list price but does not mean that is what you should offer. If you make a lower offer they will have to go through more underwriting and will take longer; thats ok if you have the time because you could end up getting a better deal. In any case just because the property sold for 212k in 2006 does not mean its a good deal at 130k. You should ask a Realtor for an opinion on the actual value of this home, keep in mind when you buy a Realtor is typically paid by the seller.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Fri Apr 25, 2008
The question I have for you is are you working with a Realtor? If so, they should be able to provide you with a good list of comparable homes in that neighborhood. If not then you should get one because they will have YOUR best interest in mind, not the bank's.

Unfortunately, you probably won't get an exact answer on Trulia because we don't know the specific details of the property. It's pretty rare that a bank will list a home with a low value just to get interest in the home.
Web Reference: http://www.thegoheens.com
0 votes Thank Flag Link Thu Apr 24, 2008
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