To determine what price to offer on a short sale home you need to understand what the bank will evaluate in making a decision. The bank is only interested in two things in determining whether to ntake a short sale offer. The first is the vlue of the property in todays market compared to the amount offered. If the offer is significantly lower than the Bank negotiator believes the bank could net after foreclosure and marketing, what is the incentive to accept the offer. The second is the ability of the buyer to close whether it be cash or financed. A cash deal requires proof of funds available to close and a financed deal requires pre approval of the buyer for the bank to agree to a short sale.
The best way to determine what to offer is to work with a professional agent to determine the fair market value and the 30 day distress sale value. The bank will do the same by ordering a Broker Price Opinion and or appraisal when the short sale offer comes in.
Feel free to contact me if you would like to discuss the process further. It can be worthwhile as good deals can be made in short sales if you are patient.
Ken Lowe - Realtor
Prudential Florida Realty
Use your Silver Bullet on a Re-Sale or Foreclosure where a Cash Buyer actually means something
I have a certiified Short Sale and Foreclosure Resource designation from the National Association of Realtors and would be happy to work with you if you do not already have a qualified Realtor.
If you have cash, make offers on Re-Sales and Foreclosures! Or instead of sinking so much money into Dead Equity with rates so low, look at doing a purchase loan, write off the interest and diversify invest that money elsewhere
If you can prove you have the ability to pay cash, you can still work the same deal, and still finance the purchase.
see the newest loan programs at http://www.pro-option.com
tells us to do our homework for our clients best interest.
Choose one of the best answers from a responder to your question and please call them to assist.
Linda Granata, Realtor
Personal - Professional - Prompt since 1967
Joe Epifanio, PA
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Kenneth (Ken) Lowe - Realtor SFR
Short Sale and Foreclosure Recourse
Lots of great advice from my knowledgable colleagues here.
Please read what they have to say and then get in touch with a realtor who you trust and can work with.
It will not cost you - the commission has already been agreed between the listing agent and the seller.
You will not save by negotiating down the commission - it has already been negotiated etc etc
You should not try to go into a short sale alone.
There really is no reason to and down the road you will understand why!
Jeannine de Alwis, GRI
Coldwell Banker Residential R E
Is this property listed as "Bank Approved" listing price?
If so then that is the price you should offer. If not then you could offer what you are comfortable making.
Once the Bank has " Approved" the sales price that is golden for us Realtors as we can then market the property as a quick close short sale listing.
Ask your Realtor.
239 289 1849
It is not the cash that gets the job done. Each property has a fair market value. The value is determined by what a consumer is willing to pay. you take the recent sales for same type property, (last 3 months) get as per sq foot price or average the like properties and you have fair market value. Now, with that out of the way you discount the fair market value and you arrive at a price. There is a formula that is used by the banks to come up with a correct number, we have it and back into it once we know what other costs the bank is going to have to pay. You do not have to tie up a lot of money, you do have to tie up some time. If you make a ridiculous it will go no where. you are just wasting your time if you like the property enough to buy it find out what the fair market price is and discount it for your buying it at a short sale. I hope this helps you anything else I can do to help please feel free to email me at email@example.com
Your buyers agent should assist you composing your sales offer based on research and history of home.
Without all documentated info., previewing property with you, and etc. no agent can provide guidance to secure a winning bid.
The bank where your cash is held needs publish a letter all these funds are available for immediate withdrawal. You can close faster than an offer with lender involved. Cash offers COULD CLOSE in less than 10 days.
However not all offers submitted regards foreclosure or short sale are accepted. We instruct our buyers if not heard from bank within 3 - 5 days best keep looking.
Lynn A. Crosby â€“ Dallas Real Estate Agent