Home Selling in Chicago>Question Details

Nicole, Both Buyer and Seller in Illinois

Is a short sale price negotiable?

Asked by Nicole, Illinois Fri Jan 9, 2009

The bank's realtor is saying that the bank is firm with their price. Will the bank be insulted if I go in with a lower offer or should I at least try to ask for less? I am scared they will reject me if I ask for a lower price. There is water damage from a busted pipe and the carpet needs to be replaced.

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8
therer is a science when offer a short sale contract. if you the house has water damage then you have to adjust the price because once you buy it you will be stuck with the deal. never be afraid to offer what you think the house is worth. you can always come in and raise the price if they bank denies your offer.
0 votes Thank Flag Link Tue Jan 20, 2009
Nicole,

In addition to all the previous answers below, make sure you know the water pipe issue can be corrected. Short sales can create a great opportunity to purchase at a good price but the benefits can be rapidly eroded if you buy a property that requires water issues to be addressed.

Good Luck, Ken Dooley.
Web Reference: http://www.KenDooley.com
0 votes Thank Flag Link Sat Jan 10, 2009
Nicole,

Since you are working with a realtor, it would be advisable to use them as your primary resource. As previously mentioned, eventhough a "short sale" price is negotiable the bank must approve any amount below the amount actually owed to the bank. They do not like accepting a lot less money at this stage of the process.
0 votes Thank Flag Link Sat Jan 10, 2009
Dear Nicole,

Short sale prices may be negotiable but you should note two things:

there is likely to be much less room (percentage wise) to negotiate or lower the price, and

if you offer at a price that is lower than the price at which the property is being advertised for sale then you should be prepared to wait much longer for a response to your offer.

Your lower offer may trigger the bank to have the property re-appraised and the bank will wait until the new appraisal is received and compared to their previous appraisals to determine a new price.

Good luck.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
Web Reference: http://www.myagentchris.com
0 votes Thank Flag Link Sat Jan 10, 2009
In a short sale you first have to note the bank does not have to accept or agree to a short sale. Inmost cases they will accept 80% of what the home owner owes. So if the bank tells the listing agent we will not sell for below x amount, the list agent passes that onto you. Now you can make an offer and see what they say, however be prepared to probabily get rejected. but you will never know unless you try. With your offer include a preapproval letter, a letter why you are offering less along with an estimate of how much to fix. Include photos for best results. good luck with your purchase nicole.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Jan 10, 2009
Nicole
The best way to get an offer accepted (by anyone) is:
1. Present the best case for you as the buyer:
-proof of deposit funds
-loan pre-approval pending appraisal and title
-no unnecessary contingencies - no selling your property first, etc.
-shortened contingency periods- tell them once they approve the price you can close fast...maybe 30 days?

2. If you are offering less than asking your Realtor could do a brief market analysis, perhaps show some recently sold properties that are similar and their actual selling price.

3, Include market data to show which way the market is headed. For example, in my market we had a pretty could drop a while back, so I showed a graph of the downward trend of average sale prices and stated that my buyer was concerned that the property would be worth less after they bought it.

You are dealing with business people, so use business strategies to make your case. If you are unable to show that the property is really worth the price you are offering, I would ask you, if you were my client, "are you trying to steal the house or buy it"?

Good luck.
0 votes Thank Flag Link Sat Jan 10, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Yes I am working with a realtor.
0 votes Thank Flag Link Fri Jan 9, 2009
Yes, but the bank has to sign-off on the final price and getting their approval can take months. If you're looking to buy a short-sale you're not going to be closing in less than 3 months.

Also, who cares what the other realtor says. Her job is to submit all offers and she isn't the bank so it's not her call. If you need expert representation on your purchase I'm happy to help guide you through this.

Scott Newman
Newman Realty
0 votes Thank Flag Link Fri Jan 9, 2009
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