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Offered 332k for this SFH in short sale. The regular sale around is normally 340-350k, with a few 400k houses, but it's hard to find identical setting ones for a direct comparison.
Now bank got back at us asking for 372k. I know another short sale in this community was approved at offer price 299k (1 year newer, same number bd, 2.5 ba compared to 3 ba in our short sale, different bank though), another similar house (older, but same bd/ba) was sold at 330k (regular sale).
The BPO guys might not even go inside the house at all since the combo code was changed by someone (even the seller agent did not know it now), so I feel they just randomly give a inflated price.
Anyway, the house was estimated by zillow for 336k, and I will need to throw in about 10-15k to the renovation for sure (windows need to be changed, some doors, also need new floor and paint at least, some appliances look broken too).
Now my agent said even the seller agent thought it was way over the line that the bank ask such a high price, they are discussing what we could do from both sides to make it lower. My agent's plan is to put a counter price at 340-345k and we throw 400 bux for another appraisal and hoping bank would lower it further to my asking price. Of coz the risk is bank might reject the appraisal price, so 400 in water.
My question is, at this stage is there anything we could do to help the situation at all? My another realtor friend told me, based on his experience with short sale, bank normally would not counter anthoer time, so my counter offer would be a yes or no to them. He thought the bank is waiting for a 352k (exactly half off their 40k increase), and lower than that price, the bank might just say no.
Here is my experience with a SS that I helped a friend negotiate. Property listed at 99K and the listing agent suggested we put in cash offer at $82K. They accepted it and started the whole process (house is empty with a few violations). A few months go by as they are trying to get the banks to the table. There was a first mortgage and a 2nd line of credit. While he is waiting, properties price rises. During the 1st attempt with the HUD1 , the 2nd creditor did not sign off. They waited until close the extension deadline and ask for the $10K that is short. It was take it or leave it.
I told the agent to counter the offer with a 3 way split of the $10K. They came back with an offer of $5K as final offer. We took it with the stipulation that it closes with 10 days.
So I think every situation is different. It really depends on how close you are in getting the deal sign. In this case, everything was done already. Everyone wins when they compromise and move forward.
Or counter the bank with what you are willing to pay. They either accept it or you walk. I had a deal last year, offered $330K, bank said $375K, buyer said $350K and bank accepted it. It was well worth $350K and buyer went into the deal knowing that $330K would probably not be approved.
I offered $137K on a short sale and after four months, the bank countered at $156K saying it's the lowest they'll take. I decided to withdraw my offer. My agent called me a month later saying the other agent had called saying it may have been over appraised and asked if I'll take it should they came back at the price I'd offered. I told my agent no since I wasn't too attached to that house. I'm glad it turned out that way because prices in on that street and neighborhood have dropped even further.
Here is one for you...
I placed an offer in 2011 on a home in Arizona that was listed for $75K that was a short sale. Keep in mind this home originally sold three years earlier for $225K.
By the time me realtor put my offer in, there was already offer at asking. I decided to submit a backup offer for $5K more just in case the original offer didn't through.
Well a few weeks passed…
Realtor calls, you want to good news or bad news first?
Good news- the original offer fell through
Bad news- The bank wants $95K on the short sale.
Because it was a vacation home, a budget to stick by and lot of options around we declined.
The listing was amended to include the 95K bank approved price, months passed and no offers. Eventually it drops to $75K again, but by this time I had a closed sale and was no longer interested but kept an eye on it.
It was sold eventually for $70K, $10K less than my offer a few months earlier and the kicker? Because it was a short sale and there were very few traditional sales the buyer would paid cash for flipped it with minimal work for $115K in less than two weeks later.
It was sold eventually for $70K, $10K less than my offer a few months earlier and the kicker? Because it was a short sale and there were very few traditional sales the buyer would paid cash for flipped it with minimal work for $115K in less than two weeks later.
This is short sale ! :-)
You need to wait and keep an eye on the property.
Give a bait to the bank for the prices to lower down a bit.
Obv it is a ss so banks will be willing to sell off the property.
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