Short Sale Pricing Discussion

[gmarc]

aa with some properties moving into the $200 range per sf on foreclosures and short sales it will be hard to now build any cheaper including land.If banks keep this super tight lending up could we end up at $100-$150 a square foot on 30-a?Anythings possible.

 

[Bobby J]

Bobby, I had the inside on a bundling of REO's deal with a local bank. I can tell you that some banks are working a plan that they know an awful lot about. Fact: You will see banks call loans and take real estate in order to add some value to their bundled deals.

Makes sense with a local bank. Large banks and working a plan....? Nope. I would have a hard time buying that one.

 

[AAbsolute]

aa with some properties moving into the $200 range per sf on foreclosures and short sales it will be hard to now build any cheaper including land.If banks keep this super tight lending up could we end up at $100-$150 a square foot on 30-a?Anythings possible.

It's sure not going to be easy to be both busy and profitable as a builder again this year. We doubled our sales in '05 then doubled them in '06. '07 we doubled '06 sales again. As the markets turned down our sales grow, which we've seen happen in 3 recessions. I know it's only attributable to price versus value.

Now...... We have gotten fearful of taking new customers and are almost exclusively in equity transactions. We have referred out at least 12 incoming work requests to area builders who look like they do good work.

 

[Alyoopster]

Well not always, if she made those offer numbers up in her head.. she wouldn't be violating a contract, she'd just be comitting fraud. :roll:

Allyoop, you might want to talk to the selling bank, you may be the victim of fraud, in which case you could withdraw the offer and negotiate a lower price. Your whole situation sounds very fishy! Short sales going through in days, your agent telling you what the other offers are, you feeling compelled to offer at list... fish fish fishy!

I think you have me confused with Zirondelle's comment. My agent didn't tell me the price of any offers and i wasn't compelled to offer at list.

As for my deal being "fishy". Why would my agent/broker/friend call and tell me the bank just approved our offer and it not be true??? I talked to them again today and everything is a go.

I'll update when we close in a few weeks.

 

[30ashopper]

I think you have me confused with Zirondelle's comment. My agent didn't tell me the price of any offers and i wasn't compelled to offer at list.

As for my deal being "fishy". Why would my agent/broker/friend call and tell me the bank just approved our offer and it not be true??? I talked to them again today and everything is a go.

I'll update when we close in a few weeks.

You're right, sorry!

 

[Dominoes]

Anyone worked a short sale through Wells Fargo? I am hearing 30-45 days is the usual response time. I am a buyer not an agent. This is what my agent has told me the bank has said, but I didn't know if anyone had firsthand experience.

 

[Bobby J]

Anyone worked a short sale through Wells Fargo? I am hearing 30-45 days is the usual response time. I am a buyer not an agent. This is what my agent has told me the bank has said, but I didn't know if anyone had firsthand experience.

We will close one this month. It has taken close to 8 months to wrap the deal up. We are on the 3rd buyer. Finally, we have a go and the buyer is getting a great deal near 30A. The bank loss a bunch of money dragging this out. I find Wells to be one of the more difficult to work with in regards to short sales. Of course, every transaction is different.

 

[AAbsolute]

We will close one this month. It has taken close to 8 months to wrap the deal up. We are on the 3rd buyer. Finally, we have a go and the buyer is getting a great deal near 30A. The bank loss a bunch of money dragging this out. I find Wells to be one of the more difficult to work with in regards to short sales. Of course, every transaction is different.

Is it a short sale or a REO? Has the Lis Pendens been filed?

 

[Smiling JOe]

the progression of the sale type would be:
-regular sale
-short sale
-"in foreclosure" (Lis Pendens filed but bank not owner)
-REO (Real Estate Owned by the bank) where the bank has taken back the property and is now the owner

 

[Bobby J]

Is it a short sale or a REO? Has the Lis Pendens been filed?

Short sale with Lis Pendens filed.