Can you negotiate the listing price for a short sale?

Asked by Devin Avilla, San Jose, CA Tue Jul 29, 2008

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11
Rozalyn Fran…, Agent, Columbia, SC
Wed Nov 17, 2010
Devin everything and anything is negotiable, but a short sale is already price about 10% below fair market value, and it is already a deal so the bank typically set the price since they are taking less than what is owed on the deal.
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Kevin Vo, , San Jose, CA
Wed Nov 17, 2010
Hi Devin,
You would not need to negotiate the listing price because your lender will decide on price and commissions. The reason is pretty simple: your lender will write off any debt you owe them after the sale. Most lenders assign a third party to evaluate your property, so just relax and let your agent help you.
Good luck to you,
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Cathy Carruth, Agent, Blaine, MN
Tue Nov 16, 2010
The answer is Yes.

While typically a short sale home is listed possibly 5-10% less than market value due the need for a quick sale to avoid foreclosure, it is a distress sale nonetheless that can be negotiated upon as all other homes.

Keep in mind, however, that once the bank has your offer, they will send out other third party Realtors to do broker price opinions to see how reasonable or close to market value your offer is - as the banks want to get the most money the market will bear, also. (So, no ridiculously low-ball offers here or it won't even get this far). This will help them make an informed decision on whether or not they should accept your offer; and if they feel the offer is acceptable, that is when the bank approves the short sale to proceed and you go to close.

In the end, the homeowner, the bank and you the home purchaser all have something to gain.

For more questions on buying short sales or selling short sales, feel free to contact me anytime.

Cathy Carruth
763-286-9522
http://www.CarruthSellsHomes.com
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Dianne Hicks, Agent, Rancho Bernardo, CA
Tue Nov 16, 2010
You can always negotiate the listing price... Listing price really has little value. It is the true value and sales price that matter the most!!! The banks want fair market value so you always have to keep that in mind. If the sales price is less, that must be justified to the bank or chances are... they will not cooperate with the sales price!!! Good Luck!!!
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Intrested, Home Buyer, Florida
Tue Nov 16, 2010
Can you negotiate the listing price for a short sale?
0 votes
Jon Lu, , 95129
Sun Oct 5, 2008
Devin, when you find a home you like that turns out to be a short sale, the most important thing to find out is if the price is lender-approved. That should be the first thing you ask the listing agent. Often times, real estate agents determine the list price without first getting the bank's approval. Buyers end up wasting a great deal of time submitting an offer that never had a chance of getting approved in the first place. There are some ways to make your offer stronger, and therefore more likely to get approved by the lender. I recommend you contact our short sales specialist in my office, Mary Gonzalez at 408-250-3483 or email at mlu@cbplatinum.com. Most of the agents in our office go to her for advice about short sales and REOs.
Web Reference:  http://www.reoangelsteam.com
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CJ Brasiel, Agent, San Jose, CA
Wed Jul 30, 2008
Devin,

Everything is negotiable! Lenders are typically looking for a "net" amount that they have calculated to make a short sale worthwhile on a home opposed to direct foreclosure. That amount varies depending on the loan and the lender. A base line is 85% to market value or above. Remember that negotiating a contract means utilizing all three angles in the best way. Terms, conditions, and price. Solid loans, good down payments, short closing time, good FICO, good price, no repairs, etc...helps the deal.

Good luck,
CJ
Web Reference:  http://www.TalkToCJ.com
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Laarni G. Om…, , Orange County, CA
Tue Jul 29, 2008
Hi Devin,
Definitely! The idea though is for the lender to accept your offer and you need an experienced short sale agent to handle your transaction since this type of transaction needs a lot of patience and perseverance.
Good Luck,
Laarni
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Dallas Texas, Agent, Dallas, TN
Tue Jul 29, 2008
Yes you can offer less than the list price for a short sale. Keep in mind that most especially in California end up in a bidding war so almost submit your best offer. You real estate should be able to provide you CMA's for your review between you and your agent determine what price you feel works best. When you do submit your offer attach your lender approval letter. FYI not all offers you submit will secure the winning bid, sometimes it takes several offers.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference:  http://www.lynn911.com
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blaison samu…, Agent, Santa Clara, CA
Tue Jul 29, 2008
The simple answer would be Yes! You can write a lower offer and the bank would decide whether to approve the offered price or not. In a short sale, its the lender who decides whether or not to accept the offer and not the home owner. Work with an experienced short sale agent who can help you to write an offer which most probably accepted by lender. Let me know if you have any additional questions at 510-366-9405, I would be glad to assist you.

Blaison Samuel
Certified Short Sale Expert
Prudential California Realty
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Sean Rafferty…, , San Jose, CA
Tue Jul 29, 2008
Hi Devin,

I believe you are referring to your bid price for a listed home that will need a short sale in order to make the deal fly... right?

If so, then yes - ABSOLUTELY!

You and your agent would treat it as any other property with respect to putting together an offer.

Of course, there are differences in how the transaction will pan out - especially in relation to how long it takes the bank to say yes, no, or counter and also it'll be bumpier than normal especially for your agent during the transaction should they say yes.

Bare in mind - most short sales fail (I was told only 10% are successful by an agent today). So while a potential source for getting a deal, be prepared for a difficult transaction.

It's absolutely imperative that you work with an experienced Realtor on a short sale.

Hope this helps.

Sincerely,
Sean Rafferty, CMPS

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