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It depends on situation. In the right one, you can get a fantastic deal. It usually depends on the seller agent and how well they understand a short sale.
I had one tell me they were only considering "reasonable offers". Why, the seller ain't getting a dime back, why even negotiate and waste time. The only way you'll find out what the bank will do is get something to them ASAP to try and stay out of foreclosure.
I had one tell me they were only considering "reasonable offers". Why, the seller ain't getting a dime back, why even negotiate and waste time. The only way you'll find out what the bank will do is get something to them ASAP to try and stay out of foreclosure.
Hmm... depends on what they mean by "reasonable offers." After all, I don't think I've ever sold a home for an "unreasonable" price.
When selling short sales, my concern is to get an offer I think the bank may accept. If all comps come in at $450k, I know it's going to appraise at $450k, it's only been on the market two days, and I get an offer of $380k, I am going to counter because the offer does not have a "reasonable" possibility of succeeding.
That said, I don't feel the need to tell agents I want "reasonable" offers. It won't help. I can't picture an agent saying, "Oh, it has to be reasonable? OK, then I'll have my Buyers up their offer by $50k."
HA! With all the chatter on short sales, I am surprised my Realtor still thinks they are so new & unknown!
I work for the largest real estate company in my city and even some very successful realtors that have been doing this for years are not all that familiar with short sales. Of course, I am in one of the states with the least foreclosures so that may be why.
Some realtors are just putting up some listing prices to get new clients. I have seen some very unrealistic listing prices. Yesterday I spoke with a realtor about a home on which is owned $ 190 K, bought in 2004 for $ 135 K, and the list price is $ 115 K. IMO the bank will never agree on that price. The realtor told me the owner doesn't want to take a judgment so IMO this is not even worth to put a deposit on. The short sale I closed on was $ 60 K below clsoing price with the builder, but the seller took a $ 23,5 K judgment so that is way less.
The realtors all want to get all my info and to help with other properties, which is of cause what they do as a job, but this is to me just making unrealistic prices to catch a client, and not professional.
It depends on situation. In the right one, you can get a fantastic deal. It usually depends on the seller agent and how well they understand a short sale.
I had one tell me they were only considering "reasonable offers". Why, the seller ain't getting a dime back, why even negotiate and waste time. The only way you'll find out what the bank will do is get something to them ASAP to try and stay out of foreclosure.
They negotiate because the balance that is forgiven can be held against them, they can owe taxes on the 'forgiveness' even if the bank does not report it to the IRS. Even in a short sale the Realtor® is supposed to be getting the best price for the home for the seller to lessen the liability for them.
to Bentlee: While I know that some Realtors® are not doing what in my opinion is not the best job, you would be very surprised to find what some banks are actually accepting. Very surprised.
What I am finding at this point are some Realtors® who have learned to play the game. They put in 'straw' contracts to find a price point the bank will accept. And usually it's quite low.
At the same time, I'm finding that some banks are backing away from these short sales and modifying the mortgages if the homeowner truly wants to stay in the home.
These are very interesting times. One thing is for sure. All and I mean ALL short sales are different. There is no rhyme or reason even within the same bank.
remember once you make the offer and it gets accepted if the OTHER BROKER doesn't know what he is doing or the other Lawyer..........well their is nothing your broker can do..........................
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