Barbara Lymberis

Well Wing, it looks like there is a non-agent, non-attorney trying to give you (bad) advice. Mark is wrong about what the Bank will say. He IS right about the fact that the Bank will not negotiate with the agent, and listen carefully Mark, UNTIL the owner signs a form giving permission to the Bank to talk to the agent. My husband, an attorney, and I have dealt with REO's AND short sales. When an owner thinks he can handle such an involved situation on their own, we say "more power to you". But time is of the essence in short sales, usually, and trying to do something on your own that you have no experience with will get you into trouble. A good, experienced, knowledgeable agent will earn their commission. Mark has probably had a bad experience or experiences and feels that he could do just as well on his own. He's probably right. Get the wrong agent and you will get yourself into trouble as bad as what you yourself could cause. BUT, at least you can blame someone other than yourself for the mess you are put in!!
Mark also forgets that you FIRST have to obtain an offer before you can personally negotiate with the Bank. And that's the first, and the most important, step in the process. No offer equals no negotiation. Mark also forgets that when you are negotiating yourself, you can say something that can be used against you during the negotiations resulting in less success. A third party negotiating for you doesn't have that disadvantage AND if skilled, knows how to turn around an advantage that the Bank thinks they have in the negotiations.
As for your question, there are a lot of things that you can ask. It depends on whether you are asking an agent who you want to SELL your house or one that you want to assist you in BUYING a house. Your question isn't clear. As I mentioned in my answer to you on your other question, call me at 408-893-6306 to register for our next REO/Short Sale seminar. Then you can ask away.
As for your question, there are a lot of things that you can ask. It depends on whether you are asking an agent who you want to SELL your house or one that you want to assist you in BUYING a house. Your question isn't clear. As I mentioned in my answer to you on your other question, call me at 408-893-6306 to register for our next REO/Short Sale seminar. - Thu Jul 10 2008, 17:30

There is a substantial difference between a "Short Sale" transaction and a Bank owned property, called an REO. Your question, as you can see from the other answers you have received, is not an easy one to answer in this format. The strategy is different as to each of them. The short answer to your question is: "it depends". It depends on what the asking price is, the condition of the house, the comparable recent sales ("comps"--comps are only PART of the equation), and other factors. Your question is really asking "what is the best negotiation strategy. The expertise in negotiation comes from years of experience and a certain "knack" for negotiations. It is part learnable and part "art" or talent for it. My husband, an attorney and Real Estate Broker and I hold, or participate in, seminars on Short Sales and REO's for Buyers. If you are interested in attending one of them, call 408-893-6306 to register. All your questions can be answered there. - Thu Jul 10 2008, 16:54

There are some great prices for homes now relative to the last few years. However, some prices are artificially low in order to generate "multiple offers". Some think that's a good tactic. It may be but not always. You as a Buyer should not, in this market, in my opinion, get into a multiple offer situation in an area where they are not the norm. I advise my Buyers to find a property that is not artificially low then use my skills of negotiation to obtain a great price. That's right!! Negotiation is back again!! And that's good for you. - Sat May 24 2008, 18:57

Dai, There are three types of "foreclosures" that people might be referring to and only two of them are of the type that you should be interested in. The first type is where the Bank has notified the Buyer that they intend to sell the property either through a Court foreclosure or through a Trustee virtually at the Court House steps. A Court foreclosure is not that common so I won't address it here. A Trustee Sale should only be approached by professionals or by someone who is willing to suffer the risk of loss. It is involved and is not something I recommend to Buyers to do.
The second type is REO (Real Estate Owned) foreclosures. That is where the Bank was not able to sell the property at the Trustee Sale and now owns the property. They are, in effect, competing in the market place as any other Seller would. However, Banks have their own requirements for the sale of a property which, in a "hot" market, were non-negotiable. However, now in this current market, Banks are much more open to negotiations over the terms of the contract including price. These are properties that I DO recommend you try to purchase. The strategy and the approach are somewhat involved and space limitations prohibit me from going into those here.
The third type is called a "Short Sale". A short sale is where the Seller owes more on the property than the property is worth. In these situations I recommend you tread carefully. There are many problems with them and you, as a Buyer, need to be guided through by a knowledeable and experienced agent. There are properties which are not in a good posture to be making an offer on because of the point in the foreclosure process that the property is in. There are others where it may be worth your time and effort to try to make an offer on. People think that real estate is easy. There is much to know and it is very difficult to try to explain in such a forum. Feel free to call me if you wish additional information. - Sat May 24 2008, 18:45