Home Buying in California>Question Details

Alicia, Home Buyer in Monrovia, CA

I put an offer on short sale that was listed for $500,000, I offered $505,000, now

Asked by Alicia, Monrovia, CA Fri Jun 6, 2008

bank wants $530,000? Is this possible? I also noticed that the sheriff's sale is next week and minimum bid is $565,000, what next? Do I wait and let it foreclose and hope it becomes a REO or do I counteroffer? Help! I'm confused.

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Same thing happened to us, but the bank raised the price by 60k. It was apparently appraised for 100k more than the original asking price, yet they wouldn't show us the paperwork. = ( And just like in your situation, the house was going to auction for a larger price than what they were asking from us.

You have to ask yourself...is the house worth it? Only you can truly decide. SSs are sold "as is", so how much work is involved in fixing it up if needed? Compare the house to others listed in the same price range so you can get a feel if the house is worth the extra money. Also remember how the market's low right now. Will the price you pay today be worth it 2 years from now?

Good luck in your home search. =D
1 vote Thank Flag Link Sat Jul 19, 2008
Yes, it is possible. The listed price of $500K was the price that agent and the owner came up with. But in a short sale the bank has to agree to the price. The bank has its own broker that suggest a price after studing the Comps. If the owner's price is lower the bank's broker than they increase the price of the home. Going through foreclosure is costly to the bank. I think the homes in a shortsale are usually sold at a lower price than REO. The bank may even reduce the commission of the agent to make the sale in a shortsale. I just finish selling a shortsale home.
1 vote Thank Flag Link Fri Jun 6, 2008
With a short sale the asking price has nothing to do with what the bank will or will not accept, it is set by the listin agent , not the bank. when the bank comes back with thier counter offer that is usually their bottom line, where the sal eis coming up you dont have time to cpunter offer their counter. It is fully up to you if it is worth the $530000. if so jump on it, once it goes to sherrifs sale, then other bidders may be interested and you may lose out completly. Have your buyers agent check and see what the vaue is and us ethat as a guideline as to what it is worth in todays market. If teh bank does take it back, it could be alttle while before you see it on the market as well. good luck with working it out.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Nov 1, 2008
Have your agent check the comps and see if its worth it. You could wait for it to be foreclosed and make an offer. Speak to your Realtor and get her advice.
Sincerely,
Betina Foreman, Realtor Austin TX
0 votes Thank Flag Link Sat Nov 1, 2008
Alicia, when it comes to short sales, the asking price for the most part is meaningless. Agents list these properties at a price that will or should bring an offer in quickly in order for them to start the process with the bank since it can take anywhere from 30 to 90 days for a decision. Although the seller may accept your price and terms, the bank has the final say since they are taking a "loss" on the sale. The minimum bid is typically the amount to pay off the first loan, plus interest, fees etc. The sale date can always be postponed by the lender if they want it to be, so that date isn't necessarily set in stone. As far as countering goes, you need to think of repair costs, termite, etc. Many times the lender will not pay these types of costs, while sometimes when the property becomes an REO, they will in an effort to move the property quickly. To be able to answer your counter question better, we would need to know what other homes in the area have been selling for within the past 1 to 3 months. Do not look farther back tham that.
0 votes Thank Flag Link Fri Jul 18, 2008
Don't give up. Your offer really depends alot on your down payment. The more down payment, deposit amount and days of escrow to close all this matters to the lender. Also Proof of Funds and Credit Score helps ALOT. If you have a good amount to put down I can close with me in 2 weeks. What type of financing are you trying to qualify for and/or are approved for. Let me meet your quote, now.
0 votes Thank Flag Link Wed Jul 2, 2008
Hi, Alicia:

How badly do you want the home? Has your agent run comps for you?

It may be quite awhile before it actually gets to the market as an REO..

All the best to you!
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Sat Jun 7, 2008
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