Lowball / Short Sale Strategies ( lender, real estate, foreclosures)

[Muggy]

Has anyone successfully negotiated a short sale or lowball offer? I'm going to start tossing offers at 50 cents on the dollar. I don't really care if I upset people or not, I just want the best approach.

[verobeach]

My house is for sale. What you would get from me is complete silence. We don't have to sell. We're just fishing in the pool.

[nanwalt3]

You can toss all the low ball offers you want, but all you get is an insulted seller. I know you don't care if you upset anyone, but what would you do if somebody gave you an offer of $50,000 for your house that you were asking $100,000 for???
Oh, I know it wouldn't upset you,,,,right?
You need to first of all do some market research on the prices of homes in the area that you're looking at, and look at the listed price VS. the selling price. Do some homework first, and then go out and offer a slightly lower offer than other sales to feel the seller's motivation out.
Don't go out like a loaded cannon, firing offers all over the place.

You need to educate yourself (can you). Post us back after you do some research.
By the way, I have one of my houses on the market, and I'm not interested in your offer.

Originally Posted by Muggy

Has anyone successfully negotiated a short sale or lowball offer? I'm going to start tossing offers at 50 cents on the dollar. I don't really care if I upset people or not, I just want the best approach.

[pip349]

Insulted seller? With all the foreclosures and negatives heading our way? Muggy, go for it. 50 cents on the dollar is just about where prices will fall eventually. You will find most people are chasing the market down and will not look at your offer, but keep making them. There is one other way to play it, just chill out for 2 years and let the combination of the prices falling and inflation do the 50% deduction for you. I have followed this bubble very closely, using every blog and research tool available. People are still arrogant in Florida, prices are still way too high, but the end result is inevitable. prices will eventually be 30-60% off of today's prices, depending on what part of Florida you are in.

[Muggy]

Originally Posted by verobeach

My house is for sale. What you would get from me is complete silence. We don't have to sell. We're just fishing in the pool.

O.k., I won't buy your house. Also, you have a weird way of being silent.

[pip349]

Originally Posted by Muggy

O.k., I won't buy your house. Also, you have a weird way of being silent.

Muggy....record these posts and remember them. I read the Housing Bubble Blog and we are still firmly in denial. The arrogance of sellers is still very high, as you can see from the responses to your post. 2 years from now we will all be shocked how low prices are. Be patient, these sellers are going to see the light, it just takes a long time.

[Muggy]

Originally Posted by nanwalt3

but what would you do if somebody gave you an offer of $50,000 for your house that you were asking $100,000 for???

I am not interested in dealing with individual sellers, but banks. Banks could care less, it's just numbers to them.

Originally Posted by nanwalt3

I'm not interested in your offer.

O.k., next. This thread should be fun.

[pip349]

Originally Posted by nanwalt3

You can toss all the low ball offers you want, but all you get is an insulted seller. I know you don't care if you upset anyone, but what would you do if somebody gave you an offer of $50,000 for your house that you were asking $100,000 for???
Oh, I know it wouldn't upset you,,,,right?
You need to first of all do some market research on the prices of homes in the area that you're looking at, and look at the listed price VS. the selling price. Do some homework first, and then go out and offer a slightly lower offer than other sales to feel the seller's motivation out.
Don't go out like a loaded cannon, firing offers all over the place.

You need to educate yourself (can you). Post us back after you do some research.
By the way, I have one of my houses on the market, and I'm not interested in your offer.

You are the poster child for the delusions that are rampant in Florida. Prices have to drop 50% to be in line with fundamentals. It may take 2 years, or 5 years, no one knows. But it will most certainly happen.

[Wendyb0077]

Muggy, Lenders are not in the real estate business they are in the money business. Until the lender takes back the property you have to deal with the sellers. I did some research in my real estate market today. I searched properties that are 2005 and newer, 1800+ sq. ft living area, four bedrooms, CBS loaded homes. In just one part of town I picked up over 80 homes. Narrowed it down to 11. All of the homes were listed as SHORT SALES. with prices between 150k and 160k The origional prices where in the mid 200's and up. THIS MEANS NOTHING!!!! The seller and the realtor get together and throw a price out there. The lender hasn't agreed to any of this. All were subject to third party approval!! This 50 cents on the dollar is not realistic. NOT YET! Things are going to have to get a lot worse first..

[nanwalt3]

Exactly, that's why your approach isn't going to work. Its just numbers to them too. However, I thought you asked for input on your brainstorm, so apparently you don't like the input if it differs from your approach. I'm trying to suggest that you approach it in a businesslike manner. Yes, prices are down, but look at the market along with the properties and have all of your ducks in a row before you start shooting.
By the way, my house is priced under the market and I don't need to sell it, but I will if the offer is not insulting. I did my research first!

Originally Posted by Muggy

I am not interested in dealing with individual sellers, but banks. Banks could care less, it's just numbers to them.


O.k., next. This thread should be fun.