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IMO there is zero negotiation with a bank on a pre approved sales price of a home. That price meets the banks "net" and that is all they are looking at doing. I don't care if the other is cash, check, loan, etc. LOL all they are interested in is meeting the specific "net" they have set.
In one of the short sale that I was involved in, bank accepted offer of 10% less than approved. Closing took months and market changed. Couldn't get the 2nd lien holder to agree with contract price. Ending up splitting the difference with what 2nd lien holder requested.
I wouldn't try your luck, you might just lose. Getting a short sale is a deal as it is. A preapproved short sale is a real deal. Jump on it before someone outbids you.
In my area pre-approved short sales are not such a great deal money wise. Prices are close to straight sale if not hire and most short sale houses have lack of maintenance for years...
In my area pre-approved short sales are not such a great deal money wise. Prices are close to straight sale if not hire and most short sale houses have lack of maintenance for years...
I've seen hundreds of short sales represented as "Approved" while waiting for a contract.
I have yet to see one where that had any basis in reality.
The bank will consider, and approve or deny, after they receive an executed sale contract, not before.
Not always true.
Example: house was on the market - buyer signed contract for $X. Bank was contacted andcame back with the higher pricebeingapproved price if close by xx/xx/xx. First buyer walked away (didn't feel paying what bank approved for). House is back on the market. With bank approved price. If new buyer would step in and would be able to close by xx/xx/xx, he/she is dealing with back approved price. I saw few like that on our local market recently. Bank approved price was high.
Not always true.
Example: house was on the market - buyer signed contract for $X. Bank was contacted andcame back with the higher pricebeingapproved price if close by xx/xx/xx. First buyer walked away (didn't feel paying what bank approved for). House is back on the market. With bank approved price. If new buyer would step in and would be able to close by xx/xx/xx, he/she is dealing with back approved price. I saw few like that on our local market recently. Bank approved price was high.
That's exactly what happened to a short sale I purchased. Could never get appointment to view property for months (owner playing hardball with bank). Finally got my agent to get the scoop from the listing agent but it was approved and under contract. I figured I missed out on it. Got a call from my agent out of the blue one day and said he can finally show as the other buy backed out and seller is finally cooperating. Bank willing to take new buyer at approved price and close within 30 days.
How negotiable on the price is the bank on an approved short sale? What factors are there? Do they always sell around the asking price, more or less?
I recently bought a short sale. It was something like X,900 and I offered $100 more just because I don't like odd numbers. The sale was all sorts of messed up and as usual it's the second lender who messes it up because if the house goes to foreclosure the 2nd loses their money -- or so I was told -- so they get nasty, from my point of view.
The seller turned out to be an a-whole and in our final weeks he quit maintaining the pool -- costing me an extra $100 for re-appraisal -- and quit watering the lawn, although it recovered after a few months of water.
The whole time it was a roller coaster ride. I had about $1,100 in it for my inspection and appraisal, but eventually I got it for about $6.5K under appraisal, and after turning it into a rental I got a premium price.
But my advice is that if you want a short sale then offer the asking price and be prepared to get "as is." Yes you get your inspection, but after that you have the choice to either back out or take it "as is" because the seller is not going to fix anything.
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take with salt
