Short Sale
- Thread starter meccos12
- Start date
The Motor Court Company
Well-known member
find out who is the selling agent that represents the bank, make a low ball offer directly to her/him but give $5000 under the table. You get the house.
Irvinecommuter
New member
The California Court Company said:
That's doesn't work. Short sale evaluations are done in-house. They will know a lowball offer when they see it.
Irvinecommuter said:
Depends on whether the seller really wants out or not and their relationship with the listing agent. The seller picks the listing agent and together they pick which offers get in front of the bank. While the banks have an idea of pricing, they will only see what the seller and listing agent wants them to see. So if the goal is to delay the sale and just live there for a long long time, they will only show really low offers. If the goal is to get out as fast as possible, they will show the best offer.
I have made quite a few offers on short sales both through listing agent and a buyers agent and only times my offers have gotten in front of the bank is when I was with the listing agent.
You can always talk to a listing agent and still put in an offer with your agent. You can straight up ask them if it will help if you went through them. Some will tell you that it makes no difference and that they are simply forwarding every offer to bank. Others will start probing about what kind of offer you are thinking etc. Some ways for them to test out your flexibility for under the table cash is asking if you are interested in buying furniture or renting back to sellers for short period. Both are big no no's on the short sale contracts but if you are prepared to give cash under the table anyway, you would answer that you are open to ideas and flexible in coming up with creative solutions.
Recently, I noticed a lot of short sales are going to auction.com and the MLS is just to advertise the upcoming auction. I think banks are catching on to the games being played.
The Motor Court Company
Well-known member
well said. make an offer to the listing agent and bypass your buyer agent. work only with the listing agent.
we made offers to a couple of short sales and were always amazed many months later, these short sales were sold at lower prices than our offers. Go figure.
we made offers to a couple of short sales and were always amazed many months later, these short sales were sold at lower prices than our offers. Go figure.
rkp said:
agree for a short sale, don't use a buyer's agent. most will tell you they specialize in short sales, but then spend all their time convincing you to pursue regular sales instead of short sales for reasons that are mostly in their interest, not yours.
you need to get friendly with the owner and listing agent however you can. you can offer to purchase all the owners' furniture at a generous price, or perhaps *invest* in their struggling business or make a gift to the owners kids college funds. this needs to be done in a way that doesn't appear to create a conflict of interest with the bank. at least that is what you may be competing with in a short sale.
you need to get friendly with the owner and listing agent however you can. you can offer to purchase all the owners' furniture at a generous price, or perhaps *invest* in their struggling business or make a gift to the owners kids college funds. this needs to be done in a way that doesn't appear to create a conflict of interest with the bank. at least that is what you may be competing with in a short sale.
pricedoutJay
New member
Can you offer lower than what the listing price is for short sale? I heard that the price is set or acceptable by the bank so buyers may not have freedom to lower the price. Maybe I'm misinformed.
But short sales usually take long time and may have to accept as is? thanks.
But short sales usually take long time and may have to accept as is? thanks.
usctrojancpa
Well-known member
You sure can...I offered $25k below the asking price on the short sale home that I bought and got accepted subject to me picking up $12k of the 2nd mortgage.pricedoutJay said:
It really depends on the agent, for my short sale I represented myself and the listing agent was great to work with and very transparent and keeping me updated at every step.
You are correct, 95%+ of short sales are sold "as is" where you won't get any repairs done or credits for them. So I recommend doing very thorough inspections to determine how much needs to be spent on repairs.
Irvinecommuter
New member
pricedoutJay said:
You can make a lower offer and depending on the bank's internal calculations and demand, the offer may be the best one. Banks want to unload the properties ASAP and will do so if they can justify it to the investor.
I do have to say that some listing realtors don't do what they are required to do in giving the bank/servicer all bids. There are examples of realtors not passing along better bids for various reasons. That is clearly a breach of the realtors' duties but it happens.