I am looking at a short sale property in Wheaton, MD. It is listed at 289,000. Given the market is it

Asked by Katie, Silver Spring, MD Wed May 7, 2008

unreasonable to ask 210,000. What do you see the trends to be when it comes to the banks and short sales?

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Janice Slaven, Agent, Suwanee, GA
Mon Jun 23, 2008
One very important thing to remember with Short Sales....The home has NOT gone into foreclosure yet. You will negotiate with the Seller (home owner). So even if you come to an agreement with the homeowner, if the Listing Agent hasn't obtained all the necessary documentation the bank will require to determine even accepting a short sale, you may be sitting and waiting a long time to find out you didn't get the house. The bank can come back and counter. Also, keep in mind, with short sales, the bank has to negotiate through any liens on the property so you can receive clear title. Whereas, if the home is already in foreclosure, all debts are wiped clear. In my opinion, be very careful with short sales and be VERY, VERY patient. If you have a deadline, a short sale is not a good idea.

Good luck,

Janice Slaven, Realtor, ABR
Active Phoenix Member
Prudential GA Realty
Web Reference:  http://www.MySuwaneeHome.com
1 vote
Arthur Hardy, Agent, Beltsville, MD
Thu Sep 24, 2009
What you are doing is a common error in buying from lenders. You are trying to see what you can get the home for rather than negotiating for the home based on its real value. One of the common misconceptions is that short in short sale refers to time. All you have to do is remember you are dealing with a bank or other lender. Short for them is like most things in their business referring to money. I would urge you to use a real estate professional who has skill or better yet a team that specializes in short sales as I do. The process for each lender is different but working with a dedicated team can shorten the process because they follow the lenders current rules and procedures. Yes you can take the credit on your tax as long as you qualify as a buyer. It has nothing to do with the way you purchased your home in this case.

Arthur Hardy, Realtor
W.C. & A.N. Miller Realtors
4910 Massachusetts Ave NW
Suite 119
Washington DC 20016
(202) 362-1300 office
(202) 362-3164 fax
(202) 895-2860 direct
web arthurhardyjr.com
email arthurhardy@LNF.com

Know of anyone thinking of buying or selling a home? Referrals are greatly appreciated.
Web Reference:  http://www.arthurhardyjr.com
0 votes
Stephen Benn…, Agent, Bethesda, MD
Thu Jun 19, 2008
On Short Sales, the banks are generally looking to net 82% or higher of current market value. That means that on a home that has a current value of $300,000.00, they will expect an offer of over $270,000.00 because they will expect a net of about $246,000.00 and you need to subtract the closing costs and other that they have to cover. The best way to pay less is if the house needs work. Then you take pictures, get a contractor estimate, etc.
0 votes
Annette Burg…, , Rockville, MD
Mon May 12, 2008
Always offer what you think home is worth, however on short sales bank will take their time reviewing all offers and take the offer closest to 289K price range or best offer. Remember short sales are sold as is and what you see is what you buy or get. The market is great right now and loaded with good buys" that are not Short sales", so I would look at other properties that are not short sales in the 289k or less price range.
I have a lovely townhome listed in Silver Spring/Wheaton area (as an example) that has been Reduced 39K by sellers and it is Not a short sale.Please give me a call to discuss at 301 881 9800 ext 402 or visit my website.
0 votes
Rez Kodad, Agent, Naples, FL
Sun May 11, 2008
Katie, everything is negotiable! So, if you write your offer @ $210K, bank would after 4 -6 weeks will counter it closer to $289K. The process of short sale would be- You submit your offer > offer will go to either a 3rd party or the bank > if they have received multiple offers, they will review the best offer with less Risk and better Financial. From the multiple offers if the selected one would not approve, then 3rd party or the Bank will choose the next offer from the multiple offers they have received. So, this mean your offer could sit on someone’s inbox until get accepted or rejected.
Back to $289K vs. $210K! 10% below asking price would be my suggestion!

0 votes
Jeff Escher, Agent, Rockville, MD
Wed May 7, 2008
$210k sounds low - homes in general are selling at approx 6-8% of the list price. Of course, it depends on what nearby homes are selling for compared to the $289k list. It may already be under market value - or it could be high. Ask your realtor to do a market analysis of the neighborhood. The bank will appraise the property also and determine what price they will accept based on that.

Also, be patient. Banks can take 3-6 weeks just to respond with a "no".
0 votes
Lewis Poretz…, , Annapolis, MD
Wed May 7, 2008
Terry had a great answer. Big time suggestion - find yourself a realtor and mortgage banker that has experience with these properties. Every deal is different but typically the same hold ups and issues surface on every short sale or foreclosure. Have patience. Get high quality advice. There are deals to be had..... the trend is for banks to get these off the books - at any cost.... some will deal with a qualified borrower and some will not budge..... hope this helps - Lewis
Web Reference:  http://www.openmortgage.com
0 votes
Terry Stiles…, , 35244
Wed May 7, 2008
In our area, it is never a bad idea to make an offer on a short sale. The holder of the mortgage can
always refuse to respond or counter your offer. If they refuse the offer, you can always make another
offer $5K to $10K higher to see where the bottom is on the mortgage.
0 votes
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