Short Sale Question

[Sunnydee]

If you are truly interested in this property get a real estate agent that is well versed in short sales and make your offer. Your agent will guide you through the whole process, but you must be a patient person because it's a long and frustrating process. We made a full price offer and were able to close on ours, but it's not for the faint of heart. Best wishes.

[seashellbelle]

Originally Posted by sgoines

That is correct...so if the property isn't selling ( pretty quickly) at the listed price....then one would assume it is overpriced for THIS market. And the bank would more than likely be happy to take that listed price. So buyers considering a property like this can "make an offer" and do well if they find something they like. The short sale process is long and does require patience on the part of the buyer, but not always. It depends on the bank and who your realtor's contact is, etc. Some have gone well...banks are learning that they must go ahead and liquidate these properties now and are getting more experienced at it in some cases.

As a Realtor, very experienced in short sales and foreclosures, for my Buyers, I am seeing foreclosed homes priced for 50% less than the appraisal the Bank is required to do before setting the price. Banks price foreclosed homes, based on what comps are showing it will sell for.

Banks will normally reduce the price every thirty days, until it either sells, or goes to Auction. Normally is takes about 3 to 6 mos. to sell a high end home, and maybe just days to sell a home that has been priced well within the market value. Banks are seeking the highest and best offer, and this eliminates the bidding wars that can take place, and rarely happen.
Once an offer has been accepted and approved by the Bank it is a done deal. No more back offers accepted.
Some homes are sold before they even hit the market as foreclosed, some Banks, not all, will allow this. It comes down to what the market will bear.
Buyers are well advised to work with a Realtor whose company works directly with Banks that have assigned them the properties to sell.
If Buyers are truly interested in purchasing a foreclosed or short sale, they must have proof of funds, or be pre-qualified before even submitting an offer. Have your Realtor prepare comps for the property, and don't expect to purchase a $600,000. home for $300,000. rarely happens, you would be well advised to meet the price halfway. I have seen so many Buyers put forth lowball offers, the Banks won't even consider it, then once it sells to the "highest and best offer", they are stunned, and in may cases kicking themselves for not relying on their Realtors advice.
Banks are getting more streamlined in the process of selling foreclosed, but their requirements are more rigourous than buying a general brokerage home. The paperwork required is enormous, however, an experienced Realtor, can make the process streamlined, and much easier.
It can be a challenge, but in the end well worth all the effort, because, if you hold onto that property for at least 5 years, you will reap the benefits.

[sgoines]

Good info above...yes, the lender is trying to recoup something from these short sales and foreclosures. And the foreclosure process is expensive for lenders. It has been a "steep learning curve" for a lot of people: lenders, realtors, buyers,and sellers. But now we all need to try to move forward with these situations, and help people understand what is happening, how to be patient through the process, get these properties sold, and not be afraid of the process itself. Hopefully, we will all come out on " the other side" intact. This is a nationwide problem and all need to work together to resolve it. The short sale process needs to be streamlined a bit , to help avoid foreclosure, but we need to allay the "fear" of going there which seems to be rather pervasive now.