Counter offer and short sale on the Scottsdale home
December 18th, 2006 by KenricI got a counter to my offer placed this past Friday. The house was listed around $420,000. I put my offer in at $350,000 and the seller came back with a $370,000 counter which is contingent on the bank accepting a short sale. I don’t have any experience with doing a short sale, but I know and understand the concept.
I’m not sure how much the seller owes on this property but I’m guessing that it’s around $390,000. I think that the asking price was the lowest possible that the seller could take and still break even. It’s pretty obvious that the seller will not get this price. My offer was the 6th offer received on this property. Maybe I’m the sucker if my offer is the highest out of 6 other ones. I know that I can offer slightly more than fix and flip investors because I intend to live in the home rather than flip it right away.
Edit: I just did some research and it looks like he owes $391,000 on the home.
As for the short sale, I don’t know why the seller would counter with a number that requires a short sale rather than taking my intial offer directly to the bank to get the short sale. To the seller, he will not see the $20,000 difference except maybe in his taxes next year. So we are talking about $5k possibly.
Also, I don’t know if the seller is behind in any payments. Will the bank accept a short sale on a property where the payments aren’t late? The property isn’t in bad shape either. It’s a livable property with no major fix up issues. I can’t see where the bank would accept a short sale on this property until its pending foreclosure or in such bad shape that hardly anyone would want it.
I did not counter his counter. I’m going to stick at $350,000.
Posted in Real Estate | 3 Comments »
Stumble it!
$370k could be the lowest the bank will accept as a short sale. You are right to hold at $350 though. If it is beat up, the bank doesnt want to take this on as a REO.
Your location is primo too!
By RealOG on Dec 19, 2006
I’ve done a few short sales. The success rate depends on the institution (some are more apt to do them than others) and also the demeanor of the loss mitigation contact person. I’ve never heard of a bank taking a short sale on a loan that’s current.
By LuckyLily on Dec 19, 2006
A bank will not allow a short sale without the homeowner being delinquent. They also expect the homeowner to have a legitimate hardship. Banks do not consider being upside down a legitimate hardship without some other mitigating factors.
By ShortSaleHelper on Dec 19, 2006