Guy Ghanem's Discussions

Hi, I am trying to answer a post in "Discussions/Buying a Home" and it won't let me submit. I get an error message saying, it can't save my changes at this time and to try again. Thanks.

My first advice to you is to find out what the current comps are in the neighborhood. A comp from almost 2 years ago unfortunately does absolutely nothing for you as far as value. If the property is listed at $280,000 and the current comps are in the $250’s for example, that will help you make an educated decision on what to offer and whether you even want to pursue that particular property. Just because it’s in the foreclosure stages, don’t automatically assume it’s going to be a good deal.I’m an agent from Las Vegas, NV and from my experience in my market, banks here are accepting offers up to 10% below list, sometimes a little more and sometimes a little less depending on their motivation and how much of a loss they are taking. If the property has more than 1 mortgage tied to it, then you have less breathing room to negotiate as the second mortgage 99.9% of the time is already taking a loss and they want to salvage as much of their money as they can.As far as when to buy, here’s my advice as to how to look at it when purchasing property. In 2008, you have the opportunity to buy homes at 2002 market prices (depending on the market, but it’s pretty accurate anywhere you go in the states). In today’s market, the best opportunities are when you find them! There is no time frame attached as to when. If you try to do that, you let good investment opportunities pass you by.

very nice house. how long have you been trying to sell it and have you had much interest? usually i would look at the location of the property, the presentation and the price. i dont know how your home is priced in comparison to the neighborhood, but as far as location and presentation, i'd say it looks great! Price is definitely key. since you are willing to pay 1 side of the transaction, have you considered contacting any of the agents that specialize in your neighborhood and offered them compensation for a buyer? if you don't want to list, this is a great alternative. the more exposure you can get, the faster you will be able to sell. and by the way, just be glad you arent in Miami, 2 days ago a report by entrepreneur.com named Miami 1 of 3 of the worst places to buy in todays market. good luck with the sale.

2100 sq ft. 3 bdrm, 2 bth, 2 car garage built in 2006. 

Only thing I can add to this is time frame. When do you plan to move? Do you have children that need to be transferred from schools? Is this a job relocation from another city? Is your current living situation flexible, or do you need to move right away?Unfortunately, one of the biggest draw backs to short sales is the time it takes the bank to respond. If the short sale is "approved", then typically another buyer prior to yourself went through the agony of getting the approval and then either during the process or after decided not to buy. Nevertheless, that is good for you because it means less time to close typically.If not, then depending on the bank and the systems they have in place, it could take you up to 180 days to actually get an answer or as little as 30-60 days. It's rediculous and extremely frustrating for the agents, the buyers and sellers but fact is, with todays overwhelming mtg. defaults, the banks are understaffed and over worked.I just had a short sale listing which I received an offer on in September 2008 cancel because I still had not received any word from the bank. I would follow up with them typically 2 to 3 times a week, always trying to stay ahead of the curve and provide whatever was needed. In the end, it was the bank who dropped the ball. All promised deadlines were missed, and I still don't have an answer. After hanging in there for 5 months, the buyer finally decided to back out.Not all short sales will go like this, but this is good information for you to know and ask to find out what you may be in for.Good luck with your purchase, I hope is works out to your advantage.

All liens on the home will be cured at closing and will be the responsibility of the bank unless otherwise stated in the purchase agreement, counter, addendums etc... that also plays a factor in what the bank is willing to accept depending on what is owed in back taxes, HOA fees, liens etc...As to the "subject to bank approval of short sale" that is a precaution a listing agent has to take to protect their client the seller in case the bank doesn't approve the offer agreed upon in the contract between buyer and seller. Although the seller is signing the contract, the final acceptance is through the bank, so quite frankly, a signed O&A between buyer and a default seller has little value until the bank puts their stamp on it.

This is a great question, and one that i do not have the answer to. I did however check irs.gov and was able to come up with this:"Q: When would I have had to buy a new home? A: Only purchases of a main home located in the United States qualify, and the home must have been purchased after April 8, 2008, and before July 1, 2009. For a home you construct, the purchase date is the date you first occupy the home."This is still a vague answer unless you are buying a new home. Here is the link to the irs page: http://www.irs.gov/newsroom/article/0,,id=187935,00.htmlYour best bet is to call your CPA and seek his/her advice, and let me know when you find a definite answer because this is a great question to know the answer to.Best,Guy.