Profile picture for user6535583

short sale with multiple offers--negotiating the counter offer from the bank

My husband and I put an offer on a house that was listed at $235k for $286k, because there were multiple offers on the table and wanted to outbid everyone.
Well, we own the bid, and the seller's agent agreed to forward our offer to the bank at $235k (the original asking price), instead of our bid at $286k, with an escalation clause (so saying we would pay up to $286k).

Well, the bank finally came back with an offer of $270k. Since our initial offer, the market has gone down and with inspections and everything involved, we are now only looking to pay $250k. My question is--do I have room to negotiate with the bank without loosing the house? In other words, can we counteroffer the bank for lower price?

We are also somehow paying for the "short sale negotiator" which we have never spoken to, and from the bank's offer, it doesn't sound like he did much negotiating for us.  Are we getting "screwed" for the $7000 short sale negotiator fee?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2013 - US
We think we've answered this question for you!
 
 

Replies (4)

I have sold several short sales, and never have any of my buyers paid the short sale negotiator  ( I did have one bank wanting my client to pay a $1,000 fee, but that didn't happen, and we still got the home.) Most banks will do a BPO (broker price opinion) , which is where a real estate agent runs comps sold, and will price the property according to that. If your financing, your loan company will only loan on their appraisal, if the price is higher, you would have to come up with the additional monies plus your down payment. Good luck to you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2013
There are couple of things that come into play here. Some depend on the laws of the state that you are in. If it is legal in your state for a negotiator to charge a fee, $7,000 does seem high. I think that if you have an attorney, you should give him/her a call immediately. I'm not sure why your offer was submitted at $235,000 because your offer was $286,000. That was "highest and best" which is what got your "winning" offer in to the bank. I handle many short sales and banks, to the best of my knowledge, do not EVER entertain escalation offers. They want a number, period. The bank's counter offer is usually a "take it or leave it" although I did have a situation once that we stuck to our guns at a lower offer and the bank ultimately agreed. I wish you good luck moving forward and urge you to get legal advice ASAP.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2013
It is unfortunate that some Real Estate Agents are asking Buyers to pay for a service that should be paid out of Listing Agent commission. If the Agent cannot negotiate the sale than why exactly are they getting paid or listing short sales?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2013
It is a pity that you are not using a buyer agent.  If the listing price was $235,000 why would you offer $286,000,obviously the bank felt that the property would not appraise at the price.  You already agreed to $270,000 which is less than you had offered.  Are you getting cold feet...and now feel that the property is only worth $250,000?  We have not read the documents that you have signed, so we do not know how far into the contract you are, and whether you are able to lose the property if you try to offer less at this point.  Since you did not use a buyer agent, at this point at least have a word with a real estate attorney.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2013
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
Can't get the keys!
Profile picture for Pasadenan
Latest reply by Pasadenan
1 day ago | 7 answers
How much does a Home Inspection cost?
Profile picture for Mike Opyd
Latest reply by Mike Opyd
July 08 | 16 answers
Can the seller keep the earnest money after inspection?
Profile picture for zuser20140628062544588
Latest reply by zuser20140628062544588
July 06 | 18 answers
4 unit Multi family house
Profile picture for moneyclip8565
Latest reply by moneyclip8565
July 04 | 2 answers
Pre-approval good for FHA or Conventional?
Profile picture for Rick Phillips
Latest reply by Rick Phillips
July 03 | 15 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.