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Buying a short sale

Hi I have put an offer on a short sale that is listed at $79,000. I was just told that someone else will be making an offer today on the house. I am wondering how much higher I should go on my offer. The basement has flooded twice so that scares me. The rest of the house will need some updating. We dont want to lose this house but i dont want to pay much more either.
  • December 12 2012 - US
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Answers (5)

In my area we run into multiple offer situations every day.  

The bank will accept the highest and best offer.  This is a combination of price, financing sources, and terms, that will be determined by the bank as the offer that is accepted.  There are no real estate laws governing this.

The advice I offered to one of my clients was to make the highest price offer you were comfortable with, where you wouldn't kick yourself for seeing what the property sold for if you didn't get it.

If you are getting a mortgage, you will want to make sure your Realtor is providing you with comparable sales so you do not overbid.
  • December 17 2012
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User8667039-  A couple of pointers I can suggest, w/o knowing all of the facts with this transaction, is to do as much pre-search as possible and not worry so much about the "other offers", but concentrate on wording/preparing your offer to off set your biggest concerns. Not sure what state you're in, but I am sure our REALTOR will guide you properly.

I hope that helps.

Have a BEAUTIFUL night.

-Shawn
  • December 14 2012
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Has the basement problem been fixed? Can it be fixed? What about mold, has that bn taken care of?

  • December 14 2012
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Hopefully the current market value is substantially higher than $79,000. Look over the comps in neighborhood and see if it is worth it for you to bid higher. Keep in mind most short sales are strictly as-is. So many buyers put bids on short sales and then change their mind once they have the home inspection done although they knew all along it was As-IS. So allow yourself a budget for repairs.

  • December 12 2012
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A couple of things to consider, it is ultimately up to the investor (banks) what price is going to be taken, but they also look at things like how are you paying.  Cash is king in a situation like this, I have seen lower cash offer get accepted, and in this case with previous damage that could be the case because getting a loan approved could be a bit more difficult, depending on the current condition of the home. 

They will also consider what conditions and contingencies your willing to for go, such as buying as is, versus having an inspection and asking for repairs.

My advise would be to go in with the max you are willing to pay, or be prepared to get into a multiple counter offer situation, when they come back.  If that is what takes place, they will ask all offerers to submit their highest and best, why not do that in the first place if you are sincerely wanting the home?

The last thing that they may take a look at is what closing costs you are willing to take on versus asking them to pay.  
  • December 12 2012
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