what is the percentage that would be acceptable to bid on a shot sale without insulting and the bank taking your bid in consideration?

Asked by yomiforu, Egg Harbor Township, NJ Fri Dec 28, 2012

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John Sacktig’s answer
John Sacktig, Agent, New Jersey, NJ
Sat Dec 29, 2012
There is no percentage.

Do your due diligence on the area and see what homes have sold for to get an idea of what the appraisal will come in at; this will be around the reasonable sale number. You will also need to get an idea of what the outstanding mortgage is on the property. This will also affect the sale price of the home.

I wish people would realize that this is numbers to the bank. Realistic numbers, not the usual incorrect thought that the bank will just take anything. People, need to stop thinking that they see on the internet that someone in Montana bought a house for $13.00 from a bank foreclosure.

If you are realistic in your offer you stand a good chance of making a deal. You need to speak to an agent that understands the shortsale and foreclosure process, this joined with an attorney that understands the process will make for a successful transaction.

Do your due diligence and learn as much as you can about the house, the area and be smart. Your agent should be able to work with you to come up with a smart offer. That of course needs to be done in coordination with the seller’s agent that hopefully has explained the process to the seller.

But, I do submit silly offers to the bank though, usually it is not accepted and wastes the time and money of the buyer, but it will at least get an answer or idea of a real sale price of the property for the real buyer.
1 vote
Larry Sarlo, Agent, North Wildwood, NJ
Fri Dec 28, 2012
The fact is not insulting the homeowner. the homeowner really doesn't care if it sells for 1 penny. As long as their obligations to the bank are let go.

but banks on the other hand look at things much differently. They are numbers people. Their is no emotions to an offer with a bank. they care only about profits and how the offer allows the bank to profit.

but you can psychologically make offers with knowing you will have a counter offer.

Keep in mind the seller has alot of work to do to get approved for a short sale. If you low ball an offer it will cause them lots of work for nothing if you intend on not working out counter offers with the bank.

Your offers should be serious and you should expect counter offers from the bank...

Search Short Sales and foeclosure Deals at http://www.BuyNjShortSales.com

Larry Sarlo
RE/MAX Preferred
2 votes
Annette Law…, Agent, Palm Harbor, FL
Sat Dec 29, 2012
You can not insult a bank!
I've tried, they are impervious to insults.
They, quite frankly, can not even HEAR such things.
Do not mistake that statement for meaning the hourly employee who is trying to keep food on the table for their family to have the same thick skin. When engaging others, the best policy is to choose kindness.
Your one and only issue should be to assure the current owner, and their representatives, that you are able:
1. To stay in the game until the bank responds. (No time constraints)
2. You are presenting a contingency free purchase offer.
3. You are able and willing to 'up' your purchase offer if the bank responds with a justifiable increase.
4. You have skin in the game
You may find your thinking is the opposite of the current real estate reality. Instead of getting a discount you may end up paying MORE. This is where you really need a pro to complete an evaluation to project what the situation could be when the bank responds or counters in 30, 60, 180 or 270 days from now.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420. 4041
0 votes
Nicholas Jac…, Agent, Northfield, NJ
Sat Dec 29, 2012
Comparables. Thats the bottom line. Reality is the bank probably does pay too much attention to the offer until after it has done its Appriasal. If you are serious about purchasing a particular property that is in distress, make a slightly lower offer than what the comparables show. Sometimes the bank will take it!
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Dec 29, 2012
There is no magic percentaged, each case is individual. Many inexperienced agents list short sales below markt value that have no chance of being accepted, the bank will appraise the home and only accept offers at or near the market value less any repairs. So you need to assess what the home is worth in todays market and base it on that, dont base your offer on asking price.
0 votes
Andrew Tisel…, Agent, Clifton, NJ
Sat Dec 29, 2012
Acceptable bid should be based on some valid comparables or on cost of improvements. Check with a local agent to get valid comparable sales.
0 votes
Marsha Bowen…, Agent, Livingston, NJ
Fri Dec 28, 2012
Banks are trying to get a fair market value on a short sale. In some cases, they might be wiling to take less if the home is in need of some major repairs. A low bid could result in no counteroffer depending on the lender.
0 votes
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