We are looking at a house that is currently involved in a short sale. Our agent already told us the bank wouldn’t pay our costs and wouldn’t budge on the price. The house is for sale for $139,900 and we were thinking of offering $130,000. Is that to dramatic? That’s all we can afford. Or should we look for a house being sold by an agent and talk them down and ask for costs paid. The short sale house may take up to 3 months. And it’s as is, so we couldn’t get a home inspection. Mind you, the house was built in 1998. WHAT SHOULD I DO??
Why would you be offering lower than asking, if you’ve been told the "bank won’t budge" on price? PLUS, most foreclosures are sold "AS IS"…meaning you can have it inspected all you like, but they aren’t gonna fix anything…if you have no disposable income to spend on home repairs at this time, I would NOT be looking at foreclosures.
My husband and I bought one in 2002..and the market value has increased on it by over $100,000 since…however, we are at the beach, on a golf course, and the house was in pretty good shape for a foreclosure. We have spent the last 5 years though, making improvements as we can afford to.
Talk to your lender…consult with a GOOD real estate agent..and be sure you UNDERSTAND anything you’re signing…The lender, realtors, ALL have to disclose to you all the material facts….
PLEASE…be careful…by LESS than what you think you can afford (NEVER go to your top-end unless you are comfortable with higher mortgage payments)…and TAKE YOUR TIME deciding…DO NOT let anyone rush you into making a decision.
Short sale….or Realestate sale…?
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Why would you be offering lower than asking, if you’ve been told the "bank won’t budge" on price? PLUS, most foreclosures are sold "AS IS"…meaning you can have it inspected all you like, but they aren’t gonna fix anything…if you have no disposable income to spend on home repairs at this time, I would NOT be looking at foreclosures.
My husband and I bought one in 2002..and the market value has increased on it by over $100,000 since…however, we are at the beach, on a golf course, and the house was in pretty good shape for a foreclosure. We have spent the last 5 years though, making improvements as we can afford to.
Talk to your lender…consult with a GOOD real estate agent..and be sure you UNDERSTAND anything you’re signing…The lender, realtors, ALL have to disclose to you all the material facts….
PLEASE…be careful…by LESS than what you think you can afford (NEVER go to your top-end unless you are comfortable with higher mortgage payments)…and TAKE YOUR TIME deciding…DO NOT let anyone rush you into making a decision.
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48 years (and counting!) on this planet….
I am also a NC Real Estate Broker, Retired
Quite a dilemma. Well did the Realtor explain that houses that are for sales by short sale only cover the lenders expenses and balance of the mortgage? Which is the same as if the homeowner were selling at a loss? So If the price the bank has is still too high for you, then you need to move on. Trying to low ball the bank isn’t going to work. It’s simple economics.
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If thats all you can afford that offer what you can…. if the home is going into f/c they might take it. Is the 139K the "short sale" price? Find out what is owed on the property (public information through a title search). The short sale price should be below that price.
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if the bank will not budge then keep looking you will find a good deal in this market just need to keep looking and be patient
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You could put in a bid and see, but if the bank is firm, they’ll just reject your offer.
If you put in a bid, make sure that it carries a contingency for your bank loan and an inspection. This will help protect you and your money.
If the bank rejects your offer, don’t feel bad, don’t feel as if they’re rejecting you. They’re just holding for a predetermined set of numbers to come up for them to sell it.
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If your agent did his/her due dilligence, they may have already called the listing agent and found out verbally what offers have been turned down to save you time and trouble.
As for your closing costs, instead of offering low, offer full price and ask for closing costs. The only one thing to be concerned about is that it sometimes takes up to 6 weeks to get a response and they continue getting offers in the mean time.
As for the "as-is" you can still get a home inspection and termite done, in your contract you specify what repair limit to exceed for a cancellation. It will read, if costs to repair exceed 5000.00 the buyer has the right to cancel this contract and deposits be refunded. That is a standard "as-is" contract. If your agent told you otherwise, you need to get a new one.
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RE broker