Profile picture for jameskim80

i already offered one condo..

i already offered one condo that is on short sale.

they want 115k for bank approve price.

so i offered 85k first then they count offered me 115k again.

so i count offered 95k this time.

but the zestimate: price is keep going down..

a month ago zestimate price was 99k but todays zestimate price is 85k

and the bank still wants 115k

is the bank doesn't care about those things?

and recently were sold about 74k-89k in same condo area.

i thought short sale means bank is losing money and sell to another person

but this bank is so greedy and doesn't even care about estimate from websites and comp.

can they still sell that condo for 115k even the zestimate price is going down to 85k? 

and  does care about recently condo sold 
  • November 24 2013 - South Tacoma
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Answers (8)

1st Short Sales are not the same as buying from an individual or family. The bank holds the final say and they are losing money on the original mortgage. Once a bank determines the acceptable sales price they will not change it unless the property sits a without selling at that price for a considerable time or the home sustains some changes that might cause the property to lose value (hail storm, fire, vandalism, etc.). 

If you have time, play with some online property valuations. When I look up properties that I am listing for my clients, I'm amazed at the errors. Often they show the wrong number of bedroom, bathrooms, etc. It is also not uncommon for the room, house, or lot sizes to be way off or not to take into consideration substantial changes to the property like an added guest house or mother-in-law quarters, a swimming pool, storage sheds, new roofing, updated kitchen, recirculating hot water, and more.
Best of luck in your condo search!
  • November 29 2013
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Hello again.

You seem to be throwing around terms you have read or heard about , but apparently don't really understand.

OK, so you want to know how one determines the value (price) of a home.

Let's start with something an appraiser would use, that you mentioned - a BPO.
Know that an appraiser will be sent out by the bank to make sure the price the buyer is paying is at least equal to the number the appraiser comes up with.

"BPO" = broker's price opinion
This is the form an appraiser will fill out to indicate what his appraisal (valuation) is for the subject property. It is comprised of a list of 3 comparable homes for sale (comparable to the "subject" property - ie: the house being appraised).......it also requires 3 similar closed sales ( preferably within the past 3-6 months)......within a short distance from the subject property.
The appraiser fills out this form and hands it to the bank with his final price opinion of the home.
An appraiser is paid for his opinion.

In contrast to a BPO - there is a CMA (comparable market analysis)
This is done, more informally, without a set form, by Realtors (for free0 - it will also show current listings, along with under contract and closed sales. The agent will formulate an opinion based on this information...and may come with with a specific number, or range indicating where the home (subject property) might sell.

There is NO online estimate that can give a realistic valuation of a home!

One must VIEW the home in person to see the condition and updates (or lack thereof)........and also see, or be familiar with,  the competitive homes on the market. This is when, imo,  an agent who works in that area has an advantage over an appraiser, as appraisers rarely see the homes they are using for their comparisons.

I don't know if you have an agent, but if not, you may really benefit from working with someone who can help you with these questions, and also give you a level of comfort in determining offers on homes you may like.

Short sales are challenging, and not always the bargain some consumers think they are.

Hope this helps!
  • November 24 2013
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Profile picture for wetdawgs
There is no free website that gives you a house value that is as good as a human who has seen the house and has the recent sales data in hand (and has seen those houses).   A buyers agent may be able to give you a CMA, an appraiser (for $$) will give you a number.  Of course, even those numbers are only as good as the human who is calculating them.

  • November 24 2013
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Profile picture for jameskim80
Does anyone know how to determine house value?(market value) Is there has some kind of website? Or it determined by BPO? If BPO determines the price for house, how ?
  • November 24 2013
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Oy, I don;t know where to begin.

First of all, the bank can do whatever it darn well pleases......remember the bank is LOSING money already (and it's a bank, not  a person - don't expect them to act in a rational or reasonable way).........and , the person sitting at the desk in the bank could care less about your offer or whether their response is fair or not.

Now.............as to the Zestimate????

You are paying attention to the zestimate for goodness sakes???
As though it has any legitimate meaning to the bank.... or anyone...except you?
The zestimate is meaningless in this scenario.....the bank doesn't look at, or care about a zestimate, or any online estimate of value.

You really need someone to sit down and explain all of this to you.
Do you have an agent?
If so, tell him or her to wake up and explain what happens with a short sale and how meaningless a zestimate is.

Then....I strongly suggest you go out and find a traditional house to buy - one with real people who may actually respond to a fair price and negotiate back and forth with you.

Best wishes............
  • November 24 2013
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You clearly do not understand short sales.  A short sale is when the creditor (bank) agrees to accept less money than what is owed on the property.  In your case the bank has already agreed to accept $115K because that is what the creditor has agreed to accept.  Since you offered less, the seller has to goe back and ask again "will you accept less?"  Apparently they have decided that they will not accept that big of a loss. 
  • November 24 2013
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Profile picture for wetdawgs
"can they still sell that condo for 115k even the zestimate price is going down to 85k?"  Yes, of course they can.   A Zestimate is a calculation by a computer without the benefit of seeing the place or the community.    A Zestimate is presented with a range that covers 70% probability that a sale will be within that range.   

You are putting way too much weight in the Zestimate. Please read the FAQ carefully so you understand the value and the limitations of the Zestimate.

  • November 24 2013
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Profile picture for SoCal Engr

#1 - When you are in actual negotiations for a property, forget the Zestimate. It is an interesting tool to track trends, but even Zillow acknowledges up to a 20%-or-more error margin.

#2 - What you should be looking at are comparables, which are the recent sales in the $74K-$89K you identified. Of course, this assumes that you are making appropriate adjustments for size, age, condition, etc.

#3 - Technically, a short sale simply means that the sale amount will not result in a payoff of the mortgage. After the sale, the lender may still choose to pursue the balance from the seller, but this is not your concern. But, it is possible that the bank is losing money at $115K (i.e., the mortgage was made during the bubble prices). Without knowing the actual balance owed, you will never know.

  • November 24 2013
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