Home Buying in 34120>Question Details

Brien, Home Buyer in Naples, FL

What price should I offer on a $159000 short sale home if I will pay it all with cash?

Asked by Brien, Naples, FL Sat Feb 21, 2009

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To determine what price to offer on a short sale home you need to understand what the bank will evaluate in making a decision. The bank is only interested in two things in determining whether to ntake a short sale offer. The first is the vlue of the property in todays market compared to the amount offered. If the offer is significantly lower than the Bank negotiator believes the bank could net after foreclosure and marketing, what is the incentive to accept the offer. The second is the ability of the buyer to close whether it be cash or financed. A cash deal requires proof of funds available to close and a financed deal requires pre approval of the buyer for the bank to agree to a short sale.

The best way to determine what to offer is to work with a professional agent to determine the fair market value and the 30 day distress sale value. The bank will do the same by ordering a Broker Price Opinion and or appraisal when the short sale offer comes in.

Feel free to contact me if you would like to discuss the process further. It can be worthwhile as good deals can be made in short sales if you are patient.

Ken Lowe - Realtor
Prudential Florida Realty
Web Reference: http://www.ken-lowe.com
0 votes Thank Flag Link Sun Feb 22, 2009
Tell your Real Estate Agent to see how many offers are on the table...After recieving that information you can better judge how agressive to be with your offer....Good Luck! and God Bless!! visit our website for good tips and information http://WWW.INTEGRALHOMESANDLOANS.COM Ruby E. Reynoso 909-815-8224
2 votes Thank Flag Link Sat Feb 21, 2009
The first thing that you'd want to do, rather or not you are financing the home that you are purchasing is find out how many Offers you are competing with, this will be benificial when writing up your offer, that way you know how much competition you are up against. After that, you can better judge how to go about offering. Assume that most offers that are on the table are requesting the standard 3% closing cost credit from the Sellers, so the sellers Net will be approx. $159,000 - 3% ($4,770)= $154,230 (not including repair costs, if any)...So, if there's Offers on the table, and you want to be competetive, but not Over Offer...start at $154,500...the advantage to paying cash is it is definately more attractive to Sellers because it will Close faster and there's no middle man, or possible loan fall outs due to any occuring circumstance (that does give you the edge)...however, when it comes down to it, Sellers usually care about what ends up in their pocket at the end of the day, and will go w/ the higher amount rather it's financed or not...Good Luck!
1 vote Thank Flag Link Mon Aug 23, 2010
It all depends upon the home--each is individual. Short sales can be a great way to get a good deal on a home-- do not be afraid of them! I just sold one and it was easy and closed in less than 60 days. The banks are keeping very close to their asking price so w/o looking at what home you are looking at --a cash price on todays market would probably be best to put in at $155K. unless the home has been under contract before and the listing says BANK APPROVED PRICE--then you know the price is $159K NO MATTER what.
0 votes Thank Flag Link Sat Aug 4, 2012
We do not recommend that our customers consider short sales and if they want to pursue them we refer them to other agents- even so our website http://www.agent4naples shows you foreclosures and short sales in addition to rental options in the Naples Real Estate market. We hear that buyers get frustrated with their agent because they are upset about the lack of communication and frustration which is due to the buyer and the bank or banks that will not respond or sign the contracts. If you want to buy a home that is for sale now, you need to make sure that the sellers are actually willing to sell- now.
Web Reference: http://www.agent4naples.com
0 votes Thank Flag Link Tue Jul 31, 2012
Your Naples area Real Estate expert would be the best one to guide you on comparable sales that would justify your offer. Although we as Realtors are not appraisers, we can show you what has sold and the justified price per square foot that an appraiser would see by looking at Naples MLS sold comparables and the Collier County Public Records. Even if you pay cash the price should still be justified. You can see what is for sale on our website http://www.agent4naples.com but you must get sold comparables from a licensed Realtor or look at the public records. Also, your Realtor will find out from the listing agent or bank where the process of short sale is at the moment. If the bank has not negotiated the price your agent will probably advise you that no matter what your offer is, you may be waiting until the bank is good and ready to respond. We request and many times require that our short sale buyers use a Real Estate Attorney to negotiate the sale with the bank and protect you as a buyer.
Web Reference: http://www.agent4naples.com
0 votes Thank Flag Link Tue Jul 31, 2012
Don't waste your time on a Long Sale. Why would you think any bank wants to give any buyer a deal on a home where the owners are trying to get out of the debt they owe the bank?

Use your Silver Bullet on a Re-Sale or Foreclosure where a Cash Buyer actually means something
0 votes Thank Flag Link Tue Jul 31, 2012
In many cases, "cash" is king. But banks really don't care either way. What you offer depends on you, there are no tried and true formulas no matter what the circumstances are. A recent short sale sold for $50,000 over list, the buyers really wanted the home. So in this case it reverted to a regular sale.
0 votes Thank Flag Link Tue Jul 31, 2012
Your agent will help you to determine whether the bank is even on board with the sale and whether there are other offers. There may be multiple banks involved and they all must sign off on the deal- along with the seller that is not paying all he owes. The comparable sales are very important... and you can search the Naples MLS to see what similar homes are listed for on our website http://www.agent4naples.com. However, with a short sale you really need to use a Real Estate Attorney to research the lein history and help with negotiation in additon to consideration of the value of the home. You may just find that there are clean re-sale homes that have motivated sellers that will actually sell you their Naples Home for less than you would think.
Web Reference: http://www.agent4naples.com
0 votes Thank Flag Link Sat Jul 28, 2012
I would suggest you work with a qualified Realtor that has extensive short sale experience. They can provide a fair market analysis for the property and information on the short sale process. Banks evaluate the price they can sell for as a distress sale in a given time on market in evaluation of acceptance of a short sale price.

I have a certiified Short Sale and Foreclosure Resource designation from the National Association of Realtors and would be happy to work with you if you do not already have a qualified Realtor.
0 votes Thank Flag Link Sun May 20, 2012
The best way to determine what you should offer is to start by finding a real estate professional to help you evaluate the market and armed with that information determine what the house is worth. The goal is to pay what you think its worth without paying more than market for it.
0 votes Thank Flag Link Sun May 20, 2012
Short Sale does not mean a good deal for the buyer. Short Sale is a good deal for the seller being able to walk away from what they owe.. However, banks are no longer taking the hit from the owner AND letting the properties go below market value too.

If you have cash, make offers on Re-Sales and Foreclosures! Or instead of sinking so much money into Dead Equity with rates so low, look at doing a purchase loan, write off the interest and diversify invest that money elsewhere

If you can prove you have the ability to pay cash, you can still work the same deal, and still finance the purchase.

see the newest loan programs at http://www.pro-option.com
0 votes Thank Flag Link Sun May 20, 2012
Hi Brien, please do not try to purchase a Short Sale without a professional, reputable, experienced, Realtor! Many professionals are offering good advice in this community. Many hours of research, negotiating, personal experience with past buyers and sellers going through the Short Sale nightmare,
tells us to do our homework for our clients best interest.

Choose one of the best answers from a responder to your question and please call them to assist.


Linda Granata, Realtor
Keating Associates
Personal - Professional - Prompt since 1967
0 votes Thank Flag Link Tue May 8, 2012
If you are working with a REALTOR as them to do a market analysis for you, this way you will have a good idea of what the home is worth. If you do not have a real estate agents call me for the other suggestions.

Dependably yours,

Joe Epifanio

Joe Epifanio, PA
239-300-SOLD (7653)

Search real estate by Clicking Here
0 votes Thank Flag Link Tue May 8, 2012
Try offering the asking price and hope that the bank will accept it, paying cash when buying a home id not a big thing, anyone with good credit would be offering the same kind of money at the closing table, meaning whether it is cash or finance, the seller will walk away after closing with the same amount of money
0 votes Thank Flag Link Wed Apr 27, 2011
Pay full price because the bank is going to come back and ask for more and by then you will be over the sticker shock.

Good Luck to you.

Agnes Tabor, REALTOR
239 564-0384
0 votes Thank Flag Link Wed Apr 27, 2011
Offer what you're willing to pay for it, but not more than what it's worth.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Mar 29, 2011
The listing price does not determine what to offer on a short sale nor does a cash offer insure a lower price. Price will be determined based on verified comparable sales over the last 3 to 6 months and the banks evaluation of how much it would sell for if foreclosed. An offer with a true pre-approved finance package will get nearly the same consideration as a cash offer. The bank recieves cash at closing either way.

Kenneth (Ken) Lowe - Realtor SFR
Short Sale and Foreclosure Recourse
Web Reference: http://www.ken-lowe.com
0 votes Thank Flag Link Tue Mar 29, 2011
Offer what you think the property is worth.

Since you're negotiating with a bank, I doubt paying cash will make much of a difference.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Mon Aug 23, 2010
Hi Brian
Lots of great advice from my knowledgable colleagues here.
Please read what they have to say and then get in touch with a realtor who you trust and can work with.
It will not cost you - the commission has already been agreed between the listing agent and the seller.
You will not save by negotiating down the commission - it has already been negotiated etc etc
You should not try to go into a short sale alone.
There really is no reason to and down the road you will understand why!
Good luck!
Jeannine de Alwis, GRI
Coldwell Banker Residential R E
Naples, FL
0 votes Thank Flag Link Sun Feb 22, 2009
Is this property listed as "Bank Approved" listing price?
If so then that is the price you should offer. If not then you could offer what you are comfortable making.
Once the Bank has " Approved" the sales price that is golden for us Realtors as we can then market the property as a quick close short sale listing.
Ask your Realtor.
0 votes Thank Flag Link Sun Feb 22, 2009
The list price does not matter. The key to getting a short sale done is to have your offer close to the BPO/appraisal. If you can hit that number you have a good shot. The listing agent is also a key part, if they know what they are doing it makes it go a lot easier. Give me a call and I can get you that BPO number.


Scott Riddle
239 289 1849
0 votes Thank Flag Link Sun Feb 22, 2009
Hi Brien
It is not the cash that gets the job done. Each property has a fair market value. The value is determined by what a consumer is willing to pay. you take the recent sales for same type property, (last 3 months) get as per sq foot price or average the like properties and you have fair market value. Now, with that out of the way you discount the fair market value and you arrive at a price. There is a formula that is used by the banks to come up with a correct number, we have it and back into it once we know what other costs the bank is going to have to pay. You do not have to tie up a lot of money, you do have to tie up some time. If you make a ridiculous it will go no where. you are just wasting your time if you like the property enough to buy it find out what the fair market price is and discount it for your buying it at a short sale. I hope this helps you anything else I can do to help please feel free to email me at bcaron@kw.com
0 votes Thank Flag Link Sun Feb 22, 2009
In all sincerity short sales are really not as good as they seem. If you are paying all cash you will tie up alot of capital. I have a few interesting options I would like to speak with you about that can get you home ownership with no money down, and without using your own credit score. Please phone me at your liesure for more information.

Best Regards,

0 votes Thank Flag Link Sat Feb 21, 2009
Cash vs. a lender it does not matter the seller still nets the same amount of money.

Your buyers agent should assist you composing your sales offer based on research and history of home.
Without all documentated info., previewing property with you, and etc. no agent can provide guidance to secure a winning bid.

The bank where your cash is held needs publish a letter all these funds are available for immediate withdrawal. You can close faster than an offer with lender involved. Cash offers COULD CLOSE in less than 10 days.

However not all offers submitted regards foreclosure or short sale are accepted. We instruct our buyers if not heard from bank within 3 - 5 days best keep looking.

Lynn A. Crosby – Dallas Real Estate Agent
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 21, 2009
no offers as of now----I read that 10-15 % below asking price , plus I will pay it off to lender in cash.
0 votes Thank Flag Link Sat Feb 21, 2009
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