Quote:
Originally Posted by love to shop
In the area that I am looking for a home, there are no comps. Literally, no houses close to my price range have sold in the zip code I am looking in last 90 days despite 75+ houses for sale. You go back 2 more months and maybe 2 or 3 more houses have sold, but that seems like ancient history in this market.
I'm getting ready to submit a bid for a short sale. How will a bank determine whether my offer is fair or not? How would an appraiser look at it?
Thanks
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We have areas like that as well. What you do is find whatever comps you can...even if you have to spread out further than the one zip code. Also, I presume an agent is working with you? They will know what your local market is doing..if its still going down/stable, etc.
Alot depends on what the bank has to get out of it. Say they own the loan for $100K. They will usually list it for sale at that price. By Fannie Mae rules, they have to get at least 67% (I may be a percentage or two off on that number, but its close) of that $100K. So they couldnt take any less than $67K for it. Around here, most of the short sales are selling right at the list price or a few thousand over list price.
Also remember that just because you have an accepted offer, until the bank says its a deal, its not a deal. They take their own sweet time to respond and all the while they are also allowing other showings and other contracts to hit the table. In the end, they will choose the offer that gives them the most money for the property without regard for who's offer came in first.
Have a good agent in your corner to help you, you will need someone who is familiar with short sales and knows how to work with the banks to get the deal done. I have seen some of the gals in my office practically tearing their hair out to get them to close.
Good Luck to you!