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How much should I offer on a short sale home?

Posted on: 09th Mar, 2009 05:11 pm
The house I want is priced at 399. its been on the market for 4 months, and its a short sale, how much lower can I go on the bid?
Hi cansusieq,

Check out the rates at which other properties have been sold in that area. This will give you a fair idea about the prevailing market rates in that area. You may then be able to bid for the property. Moreover as the property is already in the market for 4 months, there are chances that the seller may reduce the price and re-list the property.

Thanks
Posted on: 09th Mar, 2009 08:09 pm
you can go as low as you wish - but you want to be successful, i presume. check on other sales in the area.
Posted on: 10th Mar, 2009 08:19 am
Hi they Realtor informed me the contract someone else had on a house I was interested in fell through. I don have any idea as to why it happened. The seller agent said the bank approved $325,000 on a short sale and I could bid that amount. Can I bid lower that that? Should I bid lower than that? I want the house, but at the best price.
Posted on: 11th Dec, 2012 02:28 am
Can you bid lower than the asking price on a short sale?
Posted on: 11th Dec, 2012 02:35 am
To Guest,

When you are applying for a short sale home and thinking "how much lower can i offer on a house", you will have to trust the opinion of your realtor. However, it is true that if you wish, you can bid a lower amount that what has been asked. It will depend upon the lender as to whether or not he will accept your bid or sell off the property to someone else.

To Salamander,

Yes, you can definitely bid a lower asking price on the short sale. But as I have stated earlier, it will be the lender's decision whether or not he will offer you the house at a lower price.
Posted on: 11th Dec, 2012 02:39 am
Hi Guest and Salamander (both),

This is a very pertinent question in this market situation. It should be noted here that the listing price may or may not be a true reflection of the lender's requirements. Some of them will offer an acceptable price, some will not. Once you have a conversation with the listing Realtor, you will be able to determine the price.

Thus, Niicss is right when he says that you will have to trust the opinion of the realtor. One thing that many of us donknow is that there are some investors out there trying to negotiate a short sale from the bank at the same time when they attempt to find an end buyer to purchase the property for an instant profit. However, the banks are getting wise now-a-days. So, the offer that the banks provide is such that it gets accepted and that it is not below market expectation.

Take care
Posted on: 11th Dec, 2012 02:48 am
Hi all,

I personally feel that you should bid only what you think will be the worth of the property to you. Also, you should have the negotiating power in order to convince the lender to go with you have said. The bank approval may hold true and you should ask to see that in writing. Even after saying so, you should still bid what you think the home is worth. Many a times, the first offer in may only end up helping to set what the bank will accept.

Thanks,

Jerry
Posted on: 11th Dec, 2012 03:05 am
If a house is a short sale, can you bid lower? Or the bank wants more?
Posted on: 11th Dec, 2012 11:01 pm
Welcome Guest,

Well, as far as I know, it will depend on the agent who has the responsibility of selling the house and the homeowner. You should note here that there are some agents who will submit multiple offers to the bank. But there are others as well, who will just accept one offer to submit to the bank. Your agent should find out how the short sale will be handled by the listing agent. This will give a better idea as to how much you need to offer in order to get the deal. Also, it should be noted that it is mandatory for the bank to accept the offer which the seller has accepted. The bank may even cancel the deal.
Posted on: 11th Dec, 2012 11:26 pm
Bidding in such cases depends on for how much long the deal was available in the market also how many customers have been bidding for it. Observing these two cases will definitely give you the idea of how much you should bid to get the deal.
Posted on: 14th Dec, 2012 09:26 pm
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