can you offer less than the asking price on a short sale?

Asked by Sandi, 90604 Fri Sep 24, 2010

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14
Teresa Krawi…, Agent, Covina, CA
Fri Sep 24, 2010
Dear Sandi,
you may offer what you want to offer, however be advised that the Bank always performs an evaluation of the value and they will be requesting an offer that matches the value. You will be competing as well with other buyers that do want to buy the property. In today's market you usually have a one chance to submit your best offer if multiple offers are submitted.
I would advice you to ask your agent to let you know what is the today's market value of the property that you are interested with and be ready to purchase it for that value. It is the most likely scenario that the bank will ask for the market value.
If you have any additional questions please contact me. Will be happy to help.
Teresa 562-698-0348 x 239
1 vote
Jane Pacheco, Agent, Fremont, CA
Fri Sep 24, 2010
You can offer whatever you feel most comfortable offering on a short sale or regular sale. Whether you get considered is a different issue, and this will depend on if there are other offers received. If you do get considered and your offer is sent to the bank, a BPO (Brokers Price Opinion) or a full appraisal will be ordered to determine the fair market value of the property. If your offer is within a certain percentage of the fair market value (usually 10%), the bank will accept your offer.

There may be a difference between the asking price and the fair market value for the simple reason that short sales are usually priced lower in order to attract buyers. In a sellers market, this results in multiple offers and the seller chooses the best offer to send to the bank.

I hope this helps.
Web Reference:  http://www.PachecoRealty.com
1 vote
Ed Torrez, Agent, City of Industry, CA
Thu Sep 30, 2010
Yes! A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

The fact that it is a short sale does not change the due diligence that your agent has to do make sure you make a fair and realistic offer on someone's misfortune.

The other answers are very good as well.

Good Luck!
Web Reference:  http://www.edtorrez.com
0 votes
Dave Singery, Agent, Whittier, CA
Tue Sep 28, 2010
The short answer is yes! Just keep in mind if you want to buy the house then you will need to offer what the property is worth. That is based on the sales of like properties in the area. The average priced property in the Whittier area is $321k and that is a verry aggressive price range!
The reality is that in a short sale the owner is in a distressed position...not the lender. Make sure your offer is fair or you will be making alot of them.
0 votes
JoAnn Sarago…, Agent, Whittier, CA
Fri Sep 24, 2010
Sure you can. First thing we would do is pull comps to determine price then submit offer. Please call me if you have any other questions. 562-652-1734
0 votes
Nancy Galarza…, Agent, Whitter, CA
Fri Sep 24, 2010
Yes you can offer less. Before you offer any amount to purchase; You must consider this: It's all bases on the comparables in the area to the subject property. What is the value of homes selling similar to the home being sold.

A license Realtor will assist you in researching those homes along with considering any unique figures home may or may not have.

Ultimately you will offer what you feel is best based on your research.
0 votes
Don Tepper, Agent, Burke, VA
Fri Sep 24, 2010
Yes.

In fact, don't base your offer on the asking price at all. Base it, instead, on the value of the property. Have your Realtor pull the comps to determine what the property is really worth in its present condition. It may be significantly more or less than the asking price.

Once you have a good sense of what the property is worth, don't pay any more than that. Your offer might be at that amount, or it might be less. Your Realtor can provide guidance on bidding strategies. But you have to begin at the property's real value, not its asking price.

Hope that helps.
0 votes
Realtor, , Berkeley, CA
Fri Sep 24, 2010
Hi Sandi,

You can offer less than the asking price on any property, short sale included. On a short sale the lender will complete a BPO (broker price opinion) to determine the value. The BPO maybe a drive by situation or an inside viewing. Have your Realtor identify the market value and provide you with documentation to make an educated decision. Preview (really look) inside/outside the property and identify the faults with the property and include those items for repair in the offer. This may help get your offer accepted.

Leah Stapleton
Real Estate Closer
DRE#01367417
USA Realty and Loans
Ph: 510-985-0149
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Fri Sep 24, 2010
Yes you can, and make sure your realtor approaches things the right way when writing the offer or helping you determine what to offer. Many times the bank will order a BPO before agreeing to the offer, or something similar if BPOs are illegal. If your realtor approaches or comes to the offer you make in the same way, it is oftentimes more successful with no counter at all. Looking at things from the bank's perspective, or seeing what they will see in the BPO, will give you an advantage many times.
Web Reference:  http://www.bpoteaching.com
0 votes
Bill Tevogt, Agent, Naperville, IL
Fri Sep 24, 2010
Yes! Making an offer on a short sale is similar to making any offer. The difference is that the Seller's Lender will also need to approve the offer. That approval will come after the the bank has had the property appraised and the short sale itself has been approved. You may not know the answer to these issues at the time of your offer.
0 votes
Steven Ornel…, Agent, Fremont, CA
Fri Sep 24, 2010
Hi Sandi, yes, you can offer less; however, you should really weigh the demand for similar homes are in your area before making the offer. Your offer should be based on a Comparative Market Analysis (CMA) that your Realtor performs for you.

Best, Steve
0 votes
Sara Mehrpou…, Agent, Los Angeles, CA
Fri Sep 24, 2010
Excellent question. I just wrote a blog post on that. Please see http://activerain.com/blogsview/1873810/looking-to-purchase-… OR http://activerain.com/blogs/athomewithsaracom for the full answer. Thanks.

Sara Mehrpouyan, CDPE
Specializing in REO & Short Sales
Dre lic #01712757
Direct: 818-903-2040
0 votes
John Barry, Agent, Eagle Rock, VA
Fri Sep 24, 2010
Hi Sandi,

Yes, you can certainly offer less than the asking price on a short sale. There is no guarantee the lienholder(s) that must approve the sale will accept it, but you can certainly offer less than the list price. Your Realtor can assist you in determining the fair market value of the property, and that will help you make a better decision as to exactly what would be a reasonable offer. Good luck!

John Barry
DRE #01856079
Coldwell Banker Residential Brokerage
Cell: 323-810-7976
Email: john.barry@coldwellbanker.com
Facebook: http://www.facebook.com/RealtorJB
Twitter: @RealtorJB
0 votes
Phyllis McAr…, Agent, San mateo, CA
Fri Sep 24, 2010
Yes, You can, however it might be best to have your Realtor check to see how much is owed on the home. The bank(s) that hold the note on the home calls the shots.

Usually the home is already listed at less than what is owed, so if you offer considerably less than that , you may not get it.
0 votes
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