In a short sale, when the seller keeps bringing the price down, what is the best way to bargain the price?

Asked by Sunil, Calfifornia Fri Aug 15, 2008

How does one lowball the offer to know what that (optimum) price is where the bank/seller will bite?

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Sylvia Barry,…, Agent, Marin, CA
Fri Aug 15, 2008
Hi Sunil:

The banks will also want the purchase to be resonable so the lenders (who ultimately have to approve the purchase), will be doing a few BPOs (Broker Price Opinion) and/or appraisals to get the market price and go from there before accepting a deal.

The sellers are dropping the price to attract offers so they can start negotiating with the lenders, this does not mean an artifically low, low price will be accepted by the lenders.

You should look at the market value and come in lower than that. If the listing price after so many price drops is already way, way lowr than market price, then I will be careful not to offer too low - the lenders can reject that after you submit the offer and waited for a month or two for accpetance.

In the answer below, what you want to provide is a pre-approval letter not a pre-qualification letter. Ther is a difference in that and pre-approval is more indepth and what you really need when you make an offer.

Sylvia
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Saurabh Sethi, , Los Feliz, Los Angeles, CA
Fri Aug 15, 2008
Sellers are not interested in bargaining in a short sale. The only hope you have of purchasing the property is by making a solid offer with a pre-qualification letter and a reputable agent.
Web Reference:  http://www.sethihomes.com
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