Short Sale Pricing Discussion

[Smiling JOe]

Joe Mammy nailed it. Much of the time for response is up to the seller, who needs to already have up to date financial statements, hardship letter, etc to submit with the offer. Financing pre-approval letter from the buyer is also a plus. The lender will order a BPO or an Appraisal, so it will take longer, unless they already have one from a previous contract on the same property. My last short sale I closed took about 5 months and two contracts with the same buyer and seller, and that seller was well-prepared regarding all of the information they needed to submit.

As Joe Mammy also stated, since we haven't always had a sale type including short sales, we don't have an accurate way to track historical short sale success, but I'd also guess it to be fairly low due to the lenders lack of urgency, and a small pool of buyers who are willing to wait so long.

 

[SHELLY]

We tend to lose the buyer before the bank can wrap it up. Then the offers get lower and lower until the bank wakes up and decides what they are going to do. I think an interesting number would be how much money (percent) the bank loses from the first offer to the final closing be it another short sale offer or foreclosure.

.....so the banks are pretty much at the same place that the investulators were about 2 years ago.

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[Bobby J]

.....so the banks are pretty much at the same place that the investulators were about 2 years ago.

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Yeah. But the investulators don't seem to be getting bailed out...

 

[conched out]

I have a question as a Buyer: I just put in a contract on a "short sale" home. Can anyone tell me the average responce time that they are getting from the lenders?? And what is the sucess rate of them actually closing the deal?? Our offer was more than the listing agent's list price.

I know i need to be patient but geezz....

We bought a short sale this past summer. Took 6 to 7 weeks for the bank approval, our offer was
the asking price. Ended up paying less (than the asking) at closing following the bank's appraisal.
Alot less per the bank's decision. Very weird and not much info throughout the whole timeline.
Obviously we were very happy with the end result despite the stress and unknowns during the
waiting period. Had all our paperwork in order at the time of the offer. Got a great place and are
lovin being part timers in the So Wal community. Hope this helps.

 

[Smiling JOe]

That is an interesting story, silvershark. Thanks for sharing a new one on me. Banks seem so far removed from this whole process, that I am not too surprised with that story -- I am, but I am not.

 

[AAbsolute]

We bought a short sale this past summer. Took 6 to 7 weeks for the bank approval, our offer was
the asking price. Ended up paying less (than the asking) at closing following the bank's appraisal.
Alot less per the bank's decision. Very weird and not much info throughout the whole timeline.
Obviously we were very happy with the end result despite the stress and unknowns during the
waiting period. Had all our paperwork in order at the time of the offer. Got a great place and are
lovin being part timers in the So Wal community. Hope this helps.

Why did the bank decide to lower the price after they approved your offer of the full asking price?

 

[SHELLY]

Why did the bank decide to lower the price after they approved your offer of the full asking price?

I'm guessing it wouldn't appraise at the higher "asking" price. It's a lot different in Dodge since one can no longer get a "Hit This Number Appraisal" anymore.

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[Zirondelle]

Hello! Very interesting discussion about short sales! We put an offer on a short sale house in Miramar Beach at the end of January and our listing agent told us there were 2 other offers on the same house. She even told us the amount of each of the other 2 offers so we offered more (actually we offered the full listing price). Who decides to accept an offer? The seller or the lender? Can the seller just sit around collecting offers until who knows when? Anybody know?

 

[conched out]

Why did the bank decide to lower the price after they approved your offer of the full asking price?

The bank's appraisal was done following our offer and came in considerably lower than our
offer much to our surprise We thought based on the numbers,we were getting a pretty good deal
at the full offer price. After the appraisal, which was pretty late in the game we would not have
gone forward with the full offer contract anyway. It was a long and winding road and had a good
result for us but seriously I think we had a good realtor, were aggressive from the start and just got a little lucky. Also we were not in a rush and were willing to stay in the game for a while. I don't know if that answered your question but its the best we can understand it. Hopefully the banks will get better at this game of short sales. Good benefits for all.

 

[Alyoopster]

I have a question as a Buyer: I just put in a contract on a "short sale" home. Can anyone tell me the average responce time that they are getting from the lenders?? And what is the sucess rate of them actually closing the deal?? Our offer was more than the listing agent's list price.

I know i need to be patient but geezz....

I'm back with good news!! You all won't believe this...well at least i can't! The house that we made an offer on just last week as gone through already...and WE GO IT!!! I'm in shock as well as everyone else i have spoken too...especially our agent. We were told 6-12 weeks before we would hear anything and the chances of the bank accepting the short sale price was slim. OMG...i hope nothing falls through but all i know is the bank called and said "bingo"!!

I hope everyone else out there has the luck that we had. Best Wishes!!