Home Buying in Norwalk>Question Details

Liz, Home Buyer in Paramount, CA

can you bid lower than the asking price on a short sale ?

Asked by Liz, Paramount, CA Thu Apr 16, 2009

Help the community by answering this question:

Answers

5
Absolutely.............

However, the lower the bid is uner the asking price the smaller the percentage chances of obtaining the home. With short sales, it is our experience, that it is important to be a close to the "asking price" as possible.

If the owners have been working closly with the bank, they should have an idea of the price the bank will settle for to close the deal. It's entirely possible the posted price may be a reflection of weeks or months of dialogue with the bank.

Good luck
1 vote Thank Flag Link Sat Apr 18, 2009
With the great summary that "Administrator" has brought up on to answer your question, why would you still consider offering lower than what the listed price is on a short sale? Of course you are free to offer anything that you consider as the value for that property , in your opinion, however in real market, It takes forever for lenders to get back to an offer on a short sale (I am waiting for one for 3 three months, and had another one since Nov 2008!). Unless it is a confirmed short sale, going near short sale properties specially at a price lower than the asking, in my opinion, is a waste of time is more of a waste of time.
Another point to consider is that most of the time in order to make the property attractive and looked at the short sale properties are listed lower than the average market analysis.
Just like Richardo said, talk to your local agent for a reliable CMA but consider looking at the REO's (Bank Owned) for more reasonable negotiation options.
Good luck.
Rochelle Yousefian
Realtor, e-PRO
Century 21 Hallmark Realty
1 vote Thank Flag Link Thu Apr 16, 2009
Its easy to get lost in the concept. A short sale emerges from a borrower delinquency . The lender is facing the problem of another recovery in a down market or alternative which is negotiating a settlement. A short sale is a dicounted settlment the borrower eats the difference on in the form of a 1099.

Problem One: If a non agency loan , the lender is not a lender. It is an interested party and must answer to a higher authority. . . the investors of a trust.

Problem Two: The lender will gain substantially more from retaining the asset to term (recourse) and taking a greater loss pending down the road with insurance and a release.

Problem Three: Why would a seller work so hard with a Realtor to exact a short sale which is nothing more than a refinance at a lower number. In other words ...take it himself!

Problem Four: Lenders are using this as a great way out to "eat" time in a recovery and then fail to deliver.

I am an investigator into these types of lender shams and need to knonw if anyone has uffered from a lender withdrawing the offer last minute and forcing the property into a REO. This is not spam.

(Wall Street buddies . . .they don't believe and yes this is a tough place to educate - - - but it's not a waste of time! They are slowly coming around).

msoliman
1 vote Thank Flag Link Thu Apr 16, 2009
Hello Liz. Submitting a lower offer on a short sale does nothing until the offer gets accepted, rejected or countered by the bank. A short sale is an ATTEMPT to sell a property at less than what is owed and the bank does not have to accept the offer. If you think the price that has been set by the agent is too high, then you can submit a lower priced offer and hope the bank takes it. If you really want to purchase you should look at REO's or approved short sales. On approved short sales you already know what price the bank has set for the home and can make your decision based on that number.

Please let me know if I could be of further assistance.

Good Luck,
Dyanna
323.359.7992
dyannaavila@hotmail.com
1 vote Thank Flag Link Thu Apr 16, 2009
Hi Liz

You can bid whatever price you want to bid on a house,
but I would recommend speaking to an agent so they can
better assist you in bidding the right price for a particular home.
Its always important to get some advise from your agent regarding
putting a offer, because if you bid low someone can bid more which
after a while that can become pretty frustrating.

Ricardo Manzanares
Coldwell Banker Dynasty
(562)650-9664
rick90650@yahoo.com
1 vote Thank Flag Link Thu Apr 16, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer