A short sale in the Westlake Village area (N. LA County / Ventura Cnty boarder) has been listed at 1.35 then 30 days later 1.25 then 30 days and now 1.1. I live in the area now after selling out of state in 2006 ( nice $$$ made). We walked the house today and like what we see so far. We live in the area and desire to stay in this location. My question for the members is what would be a fair offer and realistic sale price. I know there are a number of variables. But I considered 950k + CC of 1.5%. With members that have had experiences with SS's, what % discount off of asking have you seen realized. Thanks for the help.
Short Sale Help
- Thread starter clark_IHB
- Start date
eclipxe_IHB
New member
[quote author="treknut" date=1231073940]A short sale in the Westlake Village area (N. LA County / Ventura Cnty boarder) has been listed at 1.35 then 30 days later 1.25 then 30 days and now 1.1. I live in the area now after selling out of state in 2006 ( nice $$$ made). We walked the house today and like what we see so far. We live in the area and desire to stay in this location. My question for the members is what would be a fair offer and realistic sale price. I know there are a number of variables. But I considered 950k + CC of 1.5%. With members that have had experiences with SS's, what % discount off of asking have you seen realized. Thanks for the help.</blockquote>
Depends if the price has been approved by the bank. Unless you have the final pay-off price in hand it is simply a guessing game. Many short sales are listed ridiculously low to test the market and see what the owner can propose to the bank. Proceed with caution, most short sales either aren't completed or sale for much higher than the teaser list prices.
If you have the final price approved from the bank, that is usually the final price the seller will go for. Anything more and they have to cover out of pocket. If you are asking for 1.5% CC then you better hope your offer is 1.5% over the payoff amount the bank has accepted.
Depends if the price has been approved by the bank. Unless you have the final pay-off price in hand it is simply a guessing game. Many short sales are listed ridiculously low to test the market and see what the owner can propose to the bank. Proceed with caution, most short sales either aren't completed or sale for much higher than the teaser list prices.
If you have the final price approved from the bank, that is usually the final price the seller will go for. Anything more and they have to cover out of pocket. If you are asking for 1.5% CC then you better hope your offer is 1.5% over the payoff amount the bank has accepted.
stepping_up_IHB
New member
I'm not an expert, but from what I've seen, when the listing agent is lowering the asking price on a short sale (avoiding profanity by avoiding the acronym) it typically means that they are fishing for an offer. A short sale cannot begin to be approved by the bank until they have at least one offer. From there the bank will then decide what price they will accept. This can take months and the offer price doesn't really factor too much into the decision of what the bank will accept. With rapidly declining prices in some areas, by the time the bank officially approves the sale at x price, the property is actually worth even less than what they said they would accept.
If you really want to buy a short sale property, focus on ones that are already approved by the bank. That being said, it can't hurt to submit an offer on this property so the bank can at least start the process of whether they will approve it or not. It doesn't mean that the bank will agree to the offer price, but you'll at least know what they are willing to accept. Just be prepared to wait a few months for the response.
If you really want to buy a short sale property, focus on ones that are already approved by the bank. That being said, it can't hurt to submit an offer on this property so the bank can at least start the process of whether they will approve it or not. It doesn't mean that the bank will agree to the offer price, but you'll at least know what they are willing to accept. Just be prepared to wait a few months for the response.