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Short sale -?

If a house is listed as a short sale and the price has been approved by the bank, is it "proper" to offer less than that price?  If I offer the asking price, is it a sure bet that I will get the house (given all the inspections, etc. check out satisfactorily)?  I will be paying cash - does that help or hurt my position (potentially)?
Thank you!
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April 02 2012 - US
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Answers (5)

I have seen it go both ways. But before I go there, allow me to quote the bank - "It's ALL cash to us, in the end." In other words, whether it is cash or financed, it doesn't matter ... in the end, NET is KING (especially in the context of short sales).

As for both ways:

In the down market - I have had an approved / previously-approved / agreed-upon price, and had a buyer offer less. From the listing / seller side, this forced a re-negotiation with the bank, and came down to whether or not the buyer (you, in this instance) was willing to fight for their price. Do you have the ammo to support your offer price?

In an up market (where Phoenix finds itself today), we have seen people try and offer less, only to be overshadowed by 25 offers over the approved price. They never had a chance.

So, in conclusion, my advice would be this:

1. What is your market like? In other words, if the seller / listing agent / bank doesn't get the "approved" price - what else do THEY have on the table?
2. If you have no competition, WHY should the seller / listing agent / bank consider an offer that is LESS that a previously approved / arrived upon / supported price that they are presenting? What has changed? What proof do you have? If the answer is that you feel like offering less, that is pretty weak ... you can do better than that - dig for better support.

GOOD LUCK!


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April 03 2012
The bank has a Broker's Price Opinion (BPO) performed and prices the home close to market price if not right at market price.  You can try to propose a lower price and if it is rejected the bank may counter.  If there are other offers on the table you could lose out if you are not paying attention to what the listing agent has as far as offers on the table.
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April 02 2012
You have to remember that banks do price a short sale property fairly close to what they expect they'll get, so you certainly do not want to 'low-ball' the offer. But if the offer is reasonable - (based on the condition, etc), by all means, go for it!   Good luck.
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April 02 2012
Cash offer is a strong offer. You can try to offer less. If there is no multiple offers situation you will have a chance to come up. 

Regrading the inspections....In a short sale the seller will not be able to attend any unexpected problems detected during the inspection. If your state buying possess has has two steps (offer and then purchase and sale agreement) you should renegotiate offered price before singing the P&S. Get the estimations for the repairs and then present the report and estimations to the bank. Ask bank to lower the price according the estimations.
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April 02 2012
Cash is a king, with cash, if price is aproved by the bank, I would try to give lower offer. There is never sure bet. If someone comes and proposed more, bank can consider all offers, but again, cash is a KING.
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April 02 2012
 
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