What is a reasonable offer on a short sale when list price is bank-approved?

posted 3 years ago in Home
  • poll: What is a reasonable offer on a short sale house when the list price is already bank-approved?
    full list price : (7 votes)
    32 %
    fair market value : (7 votes)
    32 %
    above full list price : (0 votes)
    10% below list price : (4 votes)
    18 %
    15% below list price : (2 votes)
    9 %
    75-80% of last sold price : (2 votes)
    9 %
    other- explain below : (0 votes)
  • Post # 4
    Member
    1992 posts
    Buzzing bee
    • Wedding: March 2014

    We bought our house as an REO-owned property for 60% of tax value, but we offered full listing price. It was listed at $160K, and valued at $290K.

    Post # 5
    Member
    1048 posts
    Bumble bee
    • Wedding: September 2013

    @ChemistryBride:  You can offer fair market value, and if it’s less than the bank approved price, then the bank *might* say no.  Also, with short sales, if the bank isn’t that desperate to move, you might be waiting awhile before they even give you an answer either way…it could be days, weeks, or even months.  You’re just gauranteed a faster sale if you offer at the bank approved price.

    Post # 7
    Member
    10384 posts
    Sugar Beekeeper
    • Wedding: September 2010

    It just depends on where you live. Here, short sales go for full value. There is no discount due to how hot a market it is (full market value for the condition it is in, that is. If there are cosmetic or structural things going on, stuff is going to decrease its value).

    If a home has a pre-approved amount here, i’d match that, or go ever so slightly under to allow the bank to counter.

    Post # 8
    Member
    10384 posts
    Sugar Beekeeper
    • Wedding: September 2010

    @ChemistryBride:  Taking repairs into account isn’t going “below fair market”. It’s actually calculating the fair market. Market value is the value of the house after condition has been taken into account :-).

    Post # 9
    Member
    279 posts
    Helper bee
    • Wedding: June 2013

    @ChemistryBride:  It totally depends on the bank. We considered a short sale until the selling agent told us that the bank (PNC) just didn’t want to sell it, they wanted it to go to foreclosure, so they simply rejected any and all offers.

    Post # 12
    Member
    369 posts
    Helper bee
    • Wedding: December 2013

    @ChemistryBride:  I closed on my short sale purchase about 18 months ago, when the market was still tanked. Offered 10% below list price and it was accepted 2 months later. (Short sales are all about “hurry up and wait”.)
    We closed 3 months after submitting our offer.

    Nowadays, however, short sales in my area are often put in a bidding war situation, where there are 10-15 offers ABOVE list price! The market has switched back to sellers, and there are more people trying to buy and thus less homes available. So I doubt I would have been able to buy a home this summer, if I didn’t already own!

    Best of luck.

    Post # 14
    Member
    369 posts
    Helper bee
    • Wedding: December 2013

    @ChemistryBride:  You *can* still house search and even put in offers as you wait for the bank. We saw a few more open houses after the offer was in but (obviously) this short sale worked out. A lot of them don’t.
    My now DH would have lost his head if I told him, but, ON OUR CLOSING DAY, the house went up for foreclosure auction. No joke. The two depts do not communicate.
    Luckily, we still got the house. 🙂
    I told him AFTER we’d been handed the keys. 😉

    Post # 15
    Member
    7090 posts
    Busy Beekeeper
    • Wedding: August 2012

    My brother bought a short sale and I think he paid $182k when it was listed for $199k.

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