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Old 02-26-2011, 07:35 PM
 
54 posts, read 203,907 times
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Our agent told us that you can barely lower the price (list price) of short sales. According to her, banks will rarely approve them...

Anybody here bought a short sale, and how much lower from the list price?

I've found a short sale that i like, but i'd like to offer 15K less...
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Old 02-27-2011, 12:20 PM
 
Location: Nassau, Long Island, NY
16,408 posts, read 31,053,565 times
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^^^
Offer it.

But be prepared to wait an average of 3 months for an answer as to whether or not they will accept.

The banks are notoriously slow about answering short sales.

PS: Another thing about short sales -- sometimes the dispossessed homeowners are angry about it and will stay in the house (causing you to have to wait to move in and to have to pay the Sheriff to evict them), trash the house, or take appliances that are supposed to stay without telling anyone. If your offer gets accepted, I would advise you to insist on an inspection of the house the morning of the closing that shows the dispossessed homeowners are out, the home wasn't trashed, and that anything that was supposed to stay is still there ... and if anything is awry at that point, do not sign the contract to buy the house because upon that sale, these things will become your problem, not the seller's (the bank's).
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Old 02-27-2011, 02:04 PM
 
Location: East Northport
3,351 posts, read 9,054,039 times
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Offer what you want. Your agent is misguided. Banks rarely "pre-approve" a short sale price, or even consider the issue until a bonafide offer is presented. Keep in mind that, unlike a traditional sale, you will need to execute the contract before the bank considers the offer.
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Old 02-27-2011, 02:06 PM
 
Location: East Northport
3,351 posts, read 9,054,039 times
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Quote:
Originally Posted by I_Love_LI_but View Post
^^^
PS: Another thing about short sales -- sometimes the dispossessed homeowners are angry about it and will stay in the house (causing you to have to wait to move in and to have to pay the Sheriff to evict them), trash the house, or take appliances that are supposed to stay without telling anyone. If your offer gets accepted, I would advise you to insist on an inspection of the house the morning of the closing that shows the dispossessed homeowners are out, the home wasn't trashed, and that anything that was supposed to stay is still there ... and if anything is awry at that point, do not sign the contract to buy the house because upon that sale, these things will become your problem, not the seller's (the bank's).
All good advice, except that I would like to point out that, unlike a foreclosure sale, a short sale requires the cooperation of the home owner, so it is unlikely that they will refuse to leave. You are buying the home from the homeowner, not the bank. However, the bank needs to approve the sale because they will be receiving less then they are owed.
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Old 02-27-2011, 05:02 PM
 
54 posts, read 203,907 times
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Actually the sellers don't live there anymore.

It sucks that you have to wait for so long, in 3 months you could find another (better/cheaper) house
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Old 02-27-2011, 05:38 PM
 
7,658 posts, read 17,842,423 times
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Quote:
Originally Posted by IDontKnow86 View Post
Our agent told us that you can barely lower the price (list price) of short sales. According to her, banks will rarely approve them...

Anybody here bought a short sale, and how much lower from the list price?

I've found a short sale that i like, but i'd like to offer 15K less...
Are you prepared to buy cash?
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Old 02-27-2011, 05:40 PM
 
7,658 posts, read 17,842,423 times
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I heard of some funny biz going on where folks would "short sale" to family members/parents for low cash offers then hold the note so they could stay.
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Old 02-27-2011, 07:11 PM
 
929 posts, read 1,931,259 times
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Quote:
Originally Posted by IDontKnow86 View Post
Our agent told us that you can barely lower the price (list price) of short sales. According to her, banks will rarely approve them...

Anybody here bought a short sale, and how much lower from the list price?

I've found a short sale that i like, but i'd like to offer 15K less...
You can lower the price. It isn't written in stone, but a lot of agents want to discourage you from short sales because they are a real hassle for the agent. The banks will only consider one offer at a time. Plus, a lot of them don't have an approved price from a bank as a starting point. So, find yourself a new agent and then go make your offer.
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Old 02-27-2011, 07:21 PM
 
54 posts, read 203,907 times
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Quote:
Originally Posted by Crookhaven View Post
Are you prepared to buy cash?
If by "buying cash" you mean, literally, pay the $300K they want for it, or the $285K i want, in full, in cash....then no way...hahahaha
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Old 02-27-2011, 08:04 PM
 
Location: Long Island
9,608 posts, read 21,054,135 times
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I'd like to add that in addition to finding an agent who understands the ins and outs of short sales, you get yourself an attorney who has dealt with short sales (successfully) - it can make all the difference in achieving the desired result!

BTW, you're making light of it, but there are plenty of cash buyers out there, not only at the low end, but high end well

Last edited by Elke Mariotti; 02-27-2011 at 09:27 PM..
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