Is there any advantage in offering more than the asking price in a short sale?
Looking to make an offer on a short sale, but want to avoid the need for having to make subsequent offers . Does offering a higher amount help do this?
(0) | asked by: anthony pearson | share | 12 months ago | Report
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A real estate professional, who is familiar with the area, can best answer that question. Depending on the current market conditions and the condition of the home, sometimes it is wise to make a higher offer. If it is a "hot" area and active price point, inventory may be low. If the home does not need much work, there may be multiple offers. A real estate professional can advise you as to the current conditions.
It depends on the market, the comps and the expected work needed on a home. If a home only needs moderate cosmetic work to bring it up to par with the neighborhood, then your offer would be on the higher end. If the property needs a new septic, roof, rewiring, etc. - your offer would be on the lower end. Your best bet would be to work with an agent, who is familiar with the area and can provide you with comps of properties that recently sold. As a home buyer, it does not cost YOU any money to use a real estate professional. However with out the advice of a professional, it can end up costing you money if you submit a bid that is too high for the current market trends. You could also lose out on a great property by not making a competitive offer. Recently, I advised one of my clients to bid over ask price by a few dollars due to the condition of the home, the neighborhood and recent sales. He got a great home in a fabulous neighborhood!
I've read the answers from other agents and they're all correct. However, there are instances in which you might want to make a more "solid" offer than the competition and go above asking price, especially if you are in a hot market. I work with clients who rehab properties for flipping and short sales are good fodder for them if the circumstances are right (location, price, condition of home) and the bank/agent are flexible. Buying short sales and REOs takes skill and, perhaps most important, patience.
No,most times the bank will take less
Hi Anthony, The answer given by Michael Dominguez is exactly correct...I can't even add to it! If it is a property you really, really want and are not concerned over the time element, I would suggest finding out the amount owed and going a bit over.
Hello Anthony, Generally the banks are looking to get as much money back as possible. In my experience with short sales, every bank is different. Some banks are willing to take their losses and move on, others want to recup as much as they can. Another determining factor is the bank itself. Local banks are easier to work with then big national banks ie; Bank of America, Wells Fargo etc... The trick is to find out the balanced owed and make your offer accordingly. I can tell you if you offer a rediculous amount below the asking price you are just wasting your time. In many cases the banks won't even respond. A good rule of thumb is if the property has been on the market for some time and is listed as a short sale, the asking price is pretty much what the bank wants, but will usually accept a little less. Also keep in mind that a short sale is anything but a short period of time it can take up to 6 months. I hope this helps. I would also recommend using a company like CK Management. They have a lot of experience working with banks and short sales. They will work along with your agent to get the job done!
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