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Replies (6)
- David Kres, "davekres"
- Contributions:112
When reviewing the short sale, the lender (BOA in this case), will obtain either an appraisal or a "Broker Price Opinion" (BPO), either of which will take into account the amount of repairs needed to the property while evaluating the fair market value.
Regardless of the market history, if the purchase price in the short sale is very substantially lower than the valuation in the appraisal/BPO, Bank of America is unlikely to accept the short sale.
So my advise is to work with a buyer agent that takes the market history, real estate market and condition into account and come up with a good pricing strategy. Good luck!
Regardless of the market history, if the purchase price in the short sale is very substantially lower than the valuation in the appraisal/BPO, Bank of America is unlikely to accept the short sale.
So my advise is to work with a buyer agent that takes the market history, real estate market and condition into account and come up with a good pricing strategy. Good luck!
- Enrique Tejera, "DockEstates"
- Contributions:243
In essence the market is determining the fair market price of the property, 435,000 too much.
In our area (Miami Beach), banks try to get within 90 to 95% of market price. Desirable properties in very good shape often will sell for more than the asking price.
Ask a Realtor or a local appraiser to give you an estimate of the fair market price of the home in its current condition, making an allowance for the cost of repairs and the owner's effort.
You will need the repair estimates for the 203K loan anyway.
Then bid at or slightly below the fair market price.
Hope this helps.
In our area (Miami Beach), banks try to get within 90 to 95% of market price. Desirable properties in very good shape often will sell for more than the asking price.
Ask a Realtor or a local appraiser to give you an estimate of the fair market price of the home in its current condition, making an allowance for the cost of repairs and the owner's effort.
You will need the repair estimates for the 203K loan anyway.
Then bid at or slightly below the fair market price.
Hope this helps.
- Jeff Norris, "JeffNorrisHomes"
- Contributions:37
I agree with David that short sales should be handled with caution. They are often tricky and banks can be unpredictable in their negotiations. You would probably be best inclined to find an agent that has extensive experience in short sales.
- Dave Ness, "daveness"
- Contributions:3
Oftentimes the length a short sale will take has little to do with how long it has been on the market and more to do with how the banks balance sheets look....if they're flush with cash, expect to wait...and wait....and wait....and...if the bank is tight on cash (which fluctuates with Fed regulations) then expect them to make more deals and move more quickly. Can you find out about banks balance sheets? Probably not...so don't get your heart stuck on a short sale....make the offer and then forget about it....keep shopping....if it comes through, great, if not, you haven't been sitting around waiting.
Dave Ness
www.NewDenverRealEstate.com
Dave Ness
www.NewDenverRealEstate.com
- Stephanie McCarty, "snellvilleagent"
- Contributions:521
if the house is now $350K that is a substantial drop and BOA may consider it to be priced fairly for its flaws right now. Agree with another agent who responded - work with a professional REALTOR to determine fair market value range and make your offer. 203K loans are complicated animals - be sure you know what you are getting into and be certain that you can do what you expect to do with that loan. Good luck.
- irin997
- Contributions:4
Thanks everyone. I appreciate the advice. I think this home is a fantastic deal at the $350k price, but it's still just a little out of our reach.
Making an offer on a short sale?
The short sale is through BOA and we're thinking of a 203k loan. My question is, how low do you think BOA might go with this house considering the repairs and the length of time on the market?
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