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Old 05-12-2008, 01:54 PM
 
Location: Columbia, SC
8,831 posts, read 17,411,596 times
Reputation: 6168

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Quote:
Originally Posted by motown mary View Post
Wish I had known that would be the least of our worries....now that it has been accepted by the seller, we find out it is a short sale & it's going to the bank to approve. Say some prayers!
Thanks!
That it's a short sale should have been posted on the MLS sheet. You should have some issues here. I suggest talking to your newbie agents broker and asking her to assign help. If it's the sellers agent that didn't disclose they are are at fault. Sellers can't hide the fact it's a short sale until accepted contract time. In my MLS we must disclose short sales on the seller information.
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Old 05-13-2008, 01:45 PM
 
Location: Martinsville, NJ
6,151 posts, read 10,875,993 times
Reputation: 3935
I haven't been able to find time to post here in a few days, so my thoughts aren't particularly helpful to THIS buyer, BUT;

I'm with Dave. (Sorry Dave, but I got the "spread it around" pop up) The fact that you can afford to spend $209 does not mean that you WILL spend $209 on this particular house. While it is easier & simpler for everyone to have a loan approval for the actual amout you want to pay, I'd never let your situation stop me from making an offer. I very rarely go in with the negotiating strategy of "I'm offering every penny I have" anyway. My strategy is usually something closer to "This it what your home is worth to me at this moment, will you sell it to me for that amount or should I go look at another home?"
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Old 05-13-2008, 04:43 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,442,422 times
Reputation: 2661
Quote:
Originally Posted by Bill Keegan View Post
I haven't been able to find time to post here in a few days, so my thoughts aren't particularly helpful to THIS buyer, BUT;

I'm with Dave. (Sorry Dave, but I got the "spread it around" pop up) The fact that you can afford to spend $209 does not mean that you WILL spend $209 on this particular house. While it is easier & simpler for everyone to have a loan approval for the actual amout you want to pay, I'd never let your situation stop me from making an offer. I very rarely go in with the negotiating strategy of "I'm offering every penny I have" anyway. My strategy is usually something closer to "This it what your home is worth to me at this moment, will you sell it to me for that amount or should I go look at another home?"

It is still giving aid and comfort to the other side. You let them worry about whether or not you are topped out. Sure the agent suspects you are not topped out. But let her worry...why confirm you are not.

It all aids up...so don't give the other side a break if you can help it.
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Old 05-13-2008, 05:50 PM
 
Location: Albany, OR
540 posts, read 1,893,178 times
Reputation: 356
Quote:
Originally Posted by olecapt View Post
It is still giving aid and comfort to the other side. You let them worry about whether or not you are topped out. Sure the agent suspects you are not topped out. But let her worry...why confirm you are not.

It all aids up...so don't give the other side a break if you can help it.
So if I understand you Capt - you are suggesting that you NOT provide a pre-approval letter at all? If you follow the logic so far in this thread - ANY number that is in a pre-approval letter should be considered suspect (as far as negotiating leverage goes).

If the pre-approval is for the exact amount of the offer - should the listing agent assume that the buyer can't go any higher? Wouldn't that end negotiations right there? (and maybe result in your buyer losing the house?)

If the pre-approval is for an amount above than the offer, does that suggest that the buyer is willing to go that high?

Therefore...No matter WHAT the amount in the letter - the other side is left to debate with themselves the impact of that amount on the future of negotiations. So I don't see why the AMOUNT in the letter matters at all (except that it is an amount sufficient to complete the transaction).
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Old 05-13-2008, 06:00 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,442,422 times
Reputation: 2661
Quote:
Originally Posted by DavePautsch View Post
So if I understand you Capt - you are suggesting that you NOT provide a pre-approval letter at all? If you follow the logic so far in this thread - ANY number that is in a pre-approval letter should be considered suspect (as far as negotiating leverage goes).

If the pre-approval is for the exact amount of the offer - should the listing agent assume that the buyer can't go any higher? Wouldn't that end negotiations right there? (and maybe result in your buyer losing the house?)

If the pre-approval is for an amount above than the offer, does that suggest that the buyer is willing to go that high?

Therefore...No matter WHAT the amount in the letter - the other side is left to debate with themselves the impact of that amount on the future of negotiations. So I don't see why the AMOUNT in the letter matters at all (except that it is an amount sufficient to complete the transaction).
I tend to go with an amount that is a little shy of where it should be. Round off a little below the 80% level for instance. Let them wonder if it is not a stretch. If they ***** about it or counter we provide another right on. No one ever does by the way.

Again let the other side worry. Maybe it is the best we can do. Do you really want to sell now? Or do you want to wait and maybe have to come down more? Fear/Uncertainty/Doubt favor the buyer in the existing market place. Might as well create as much heat on the seller as is practical .
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Old 05-13-2008, 07:11 PM
 
Location: Albany, OR
540 posts, read 1,893,178 times
Reputation: 356
Olecapt - would you use a different strategy in a hot seller's market? In that case, any hint in the pre-approval letter that your buyer might not be as well "qualified" as another buyer can sway a seller's decision.

I'm with you as far as using it to your best advantage as a negotiating tool - and keeping some of your client's cards closer to the vest...I was just trying to make the point that the "other side" is always going to be wondering whether that letter represents the 'true' maximum - or is part of your negotiating strategy.

So ultimately its like that scene from "The Princess Bride"... "Clearly I cannot drink the wine in front of me! But, being a Sicillian..."
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Old 05-13-2008, 08:28 PM
 
Location: Jacksonville, FL Intracoastal Area
14 posts, read 28,394 times
Reputation: 11
Well, I hate to discourage you but I have some disheartening news. In FL you have to disclose that a listing is a short sale. This is a whole different world from just buying a house from a seller who is not in financial trouble with their mortgage company. Having dealt with my share of these nightmare transactions, you should know that the bank can take up to 90 just to respond to an offer, which they usually do. At which time, they can flat out refuse it, accept it or counter it. I hate to tell you this but at this point, you could be locked in to a very lengthy and stressful wait.
There is hope though.
1. I hope that your Realtor has written on the contract an expiration date and time for your offer to be considered. Still, this may cause trouble since the seller still actually has the right to sell the property and has already signed off.
2. If that is the case, it should have been put in writing on the contract that the offer is contingent upon lender approval.

In FL we have specific short sale addenda that must be used to protect potential buyers just from this type of situation. You still have the option to walk away from the deal if you don't have a long time to wait and negotiate with the bank. You can withdraw your offer. Have your agent submit it in writing and make sure she saves the fax confirmation sheet as proof. Get a copy of everything, fire her immediately and ask for a new agent!
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Old 05-13-2008, 10:23 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 32,442,422 times
Reputation: 2661
Quote:
Originally Posted by DavePautsch View Post
Olecapt - would you use a different strategy in a hot seller's market? In that case, any hint in the pre-approval letter that your buyer might not be as well "qualified" as another buyer can sway a seller's decision.

I'm with you as far as using it to your best advantage as a negotiating tool - and keeping some of your client's cards closer to the vest...I was just trying to make the point that the "other side" is always going to be wondering whether that letter represents the 'true' maximum - or is part of your negotiating strategy.

So ultimately its like that scene from "The Princess Bride"... "Clearly I cannot drink the wine in front of me! But, being a Sicillian..."
In most hot markets buyer qualification was a piece of cake if you remember back a couple of years. In those circumstances I like to see 10s of thousands of dollars in the EMD. Some reason or other people do dumb things when you lay enough green in front of them.
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Old 05-14-2008, 12:25 AM
 
Location: northern california
380 posts, read 2,112,931 times
Reputation: 147
Quote:
Originally Posted by DavePautsch View Post
So ultimately its like that scene from "The Princess Bride"... "Clearly I cannot drink the wine in front of me! But, being a Sicillian..."
The best movie, ever! Just had to say that -- and good luck to the OP.
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