When looking at a "short sale" home at $85,000, what would be the lowest amount to offer that might be accepted?

Asked by Looking To Buy, Oakbrook Terrace, IL Mon Jul 16, 2012

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Shanna Rogers, Agent, Murrieta, CA
Mon Jul 16, 2012
Hi Looking To Buy,

If you want your offer accepted, have your Realtor do a Comparative Market Analysis (CMA) on the property using SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3 months. This will give you current market value and this is what you should base your offer on - not on list price. The short sale lender is going to have either a Broker Price Opinion (BPO) or Appraisal done to determine current market value before they will even consider accepting an offer.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote
Ron Thomas, Agent, Fresno, CA
Mon Jul 16, 2012
What is your #1 Priority;
Getting a house at the Lowest Price, or,
Getting the RIGHT house at a good price?

Some people are hung-up on the PRICE THING; and if that's really that imprtant to them, then I have no argument to talk them out of it.
Most people want to put their FAMILY first; the house, the neighborhood, the features, the long-term, the security, etc.

If you're really into the PRICE, then consider this:

LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.

Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
1 vote
Terri Vellios, Agent, Campbell, CA
Mon Jul 16, 2012
Market value. The Seller's Lender will order a Broker Price Opinion and the acceptable price will be based around that.

Ron gave you excellent advice.
Web Reference:  http://www.terrivellios.com
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