OfflineHi DG family,
My question is: Are short sales negotiable with the bank or do the banks stick to the listing price?
Shirley
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Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Totally negotiable.
Have you negotiated on one and how did it work out?
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
When you offer on a Short Sale, you do it like any other offer. The first step is getting the Owner to accept it, or rather they are who it is presented to.
The owners may counter, reject or accept your offer. This usually takes place in a time frame consistent with any other offer. Then comes the waiting game--
Just a note here: in your negotiations regarding Earnest Money, hold fast to no more than $100, but you CAN stipulate you will add to the EMD when the bank accepts the offer. The reason is if you are doing a lot of short sales you get accumulate a large sum tied up for months.
So, once the owner accepts your offer, you can wait for 1-6 months for the bank to accept, counter or reject your offer--- they have the last say in the deal.
- Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Yes, and even though I've heard that the banks are getting much better at the process, apparently some still take forever.
I'm working on a short sale right now. The first offer I put in was the same price the bank previously accepted, so I thought it would be a done deal. I'm in my 3rd month. The bank requested a new BPO (Brokers Price Opinion) a few weeks ago and then decided I needed to pay a little more. I was told this was not a negotiable price....so I accepted. It's a couple weeks later and I STILL don't have a contract. Just be ready to have patience.
For some reason, I thought the banks set the price for short sales. I guess that isn't the case. I think I'll just play it safe and stay away from short sales for now. There's a lot of other avenues to pursue!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I know 1 person who negotiates short sales. He charges $2500 per property, and gets it done in about 30 days. He did 100 last year. I also spoke with an investor who has his attorney negotiate short sales on his behalf but I don't know his time frame. The attorney cuts a deal where he gets 1% and the realtors split the remaining 5%. He usually gets involved in short sales that have stalled. After talking to the guy I know who did 100,I know I have no business negotiating a short sale.
When making an offer on a short sale even at the list price does not mean the bank will accept the offer. They will wait for an offer and then do a BPO, and base their decision off what the BPO comes in at. I had an offer on a short sale that was listed for 150K. When I got a counter offer from the bank it was at 155K. Unless it is a bank approved short sale (that means the bank has approved the price) the first offer is usually a start of the negociations.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
yes, everything is always nego....
however, some banks have been known 2 bend..