When making an offer on a bank short sale or a va repo, how much wiggle room is there on the asking?

Asked by Kelly, Columbus, OH Tue Aug 5, 2008

For example, if you can see that the short sale transfered to the bank to month ago for a set amount ($30K under the asking price), would it be conceivable that they may accept $15K less than they are asking?

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Don Bush Team, , Columbus, OH
Thu Aug 7, 2008
As much as you dare to risk losing the property.
0 votes
Daniel Gregor, Agent, Pickerington, OH
Tue Aug 5, 2008
Kelly, You won't find any hard and fast rules here and looking at what the transfer was at
the sheriffs sale doesn’t really give you much more to go on... In fact it's more likely to be
misleading. Do your due diligence. Pull the courthouse information and find out: How
long ago did the (foreclosed on) owner buy the house? What was his mortgage amount?
What type of loan was it? When did the lender gain title to the property? How long has it
been back on the market? Has the property had price reductions? Has the bank had any
offers yet? How is its price compared to recent sales in the neighborhood? Do you feel
that price is reasonable for it's location, condition and the "as is" risk? Are there
conditions in the property... mold, standing water, foundation issues, problems with
mechanical systems that the lender may not be aware of (and doesn't want to deal with)
that would allow you to negotiate a better deal?

The bottom line here is the more risk you are ready to take on the better the price you're
likely to get. . Some lenders will price their Roe’s at deep discounts to solicit multiple
offers and often sell for more than the list price. Other's price just below the market and
will negotiate more. The information you've reviewed and your agent should give you all
the insight you'll need to structure your offer. - Dan
Web Reference:  http://www.gregorteam.com
0 votes
Todd Orrill, , Pickerington, OH
Tue Aug 5, 2008
Kelly, your question is really two questions in one a bank short sale and a VA Repo are treated differently. First the bank short sale. I have not been able to find a magic number with the sales price a bank is willing to accept. It seems each bank is different and each transaction is different with the same bank. I have found if the listing agent has done the homework and has a complete package with accurate comparables the bank are more willing to accept low offers off of the listing price. However if an agent does not prepare a head of time and assumes the bank will do a short sale they tend to not be as forgiving.

A VA Repo depends on if you are going to be owner occupied or an investor first time home buyer etc.. I have found the VA will accept really reduced prices on the homes. I have placed bids for my clients $15K - $30K below the price and won the bid. However this does not always happen.

My best advice would be to get an agent who is expierenced in the types of properties you want to buy. If I can assist you please let me know. My services are FREE to you as a Buyer's Agent. Please email me at Todd@ToddOrrill.com is I can answer any questions for you.
Web Reference:  http://www.ToddOrrill.com
0 votes
David M. Chi…, Agent, Uniontown, OH
Tue Aug 5, 2008
As a Realtor that does short sales, I list the home at a price that I am sure that the bank will take. But after a month or so of no offers, we talk again. I need offers to convince the bank of the value today. So yes you can offer that amount but be prepared to lose out to a higher offer if it is a good deal.
Web Reference:  http://www.liveinakron.com
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