Chase SS Help/Advice

We are first time home buyers. We found a great house that is in short sale. The listing price was $299k(I know that doesn't matter...only what the bank will accept matters.) The home has been vacant/no mortgage paid for 3 years. The seller origionally listed it for over $500k in 2007. There has not been a single offer the entire time. Home prices here locally have dropped 50% since the top of the market. The seller(who now lives out of state) has agreed to all the following offers - On June 1st, through a RE Agent, we put in an offer for $230k. After 2 months Chase counter offered at $270k. We decided that was too much and counter offered at $250. That was at the end of July. We've been waiting to hear back and finally heard from them on Nov 2nd(3 days ago). Chase came back with a counter offer of $325k! $55k HIGHER than their last offer. I don't think they know how negotiations are supposed to work. Home prices have dropped a little bit more through this process. Our RE Agent suggested we made a final offer of $250k. We agreed and put it in yesterday. The comps in the area are between $230k & $260k. After thinking about it, I wish we would have made the final offer back at $230k. Oh well....$250k it is. I just feel like all hope flew away a couple days ago when I was expecting to have good news. Frustrated! Does anyone have any advice? Thank you.

Replies

Jeffrey Burnham November 7, 2011 at 5:11am

My advice is to send a counter...DROP your price to $230, and submit comparables supporting your price!

Make sure they're GOOD comps that will stand up and include them as an addendum with your offer.

Appraisers always want to see the offer... so make your copmps part of the offer-then it will be their job to show other homes to support the banks higher price. If they won't budge just walk.
Lila Lopez November 7, 2011 at 1:47am

Good Morning Mr. Lindbloom,

As has already been suggested, you will want to have your agent put together a detailed market report that will provide the negotiator with the most recent sales. Your agent will want to point out what the numbers represent. The comparables that the negotiator may be looking at may be of homes that are in far better condition than the home you are considering. In that letter your agent will want to point out the continuing decline in pricing for this area, and also make it a point to show what a strong buyer you are for this home, and provide the necessary documentation to back it up.
Elizabeth Meyer November 6, 2011 at 7:05am

I agree with Robert, have your agent provide detailed comps to go with your offer. And, if you are really in love with the home, you can look for a hard money lender to lend you the money to purchase the home at the foreclosure/trustee's sale. (Which you would then refinance immediately at a good / low interest rate.) For example, if a family member has the money in a retirement account, they could pull it out and loan it to you, you purchase the home at the foreclosure, then you get a bank mortgage and pay back your family and your family returns the money to the IRA. So long as they return the funds to the IRA within 60 days, they pay no penalty. Just a thought as a backup if you are in LOVE with the home.
Cherilyn Jones November 6, 2011 at 6:15am

Don't give up!

Your offer is contingent upon appraisal, so if the appraisal comes in lower than your purchase price you have an out, and a strong indicator for re-negotiating the price with the bank.

They take time to respond as you know, and if you love the home, then just be patient enough to hear back. I agree with Imran, send as much supporting evidence as you can with your firm offer price to substantiate it..comps, photos, market trends, etc. There's a lot your agent can do for you in this department. Also, a personal introduction letter telling them who you are, why you chose this home, and why they should chose your offer. You'd be surprised how far this alone will get you.

Another tip, sending a pre-approval letter from Chase is also a very good way to get them to pay attention to your offer ;) They would love to see the potential for business coming back to them on the purchase loan side. You don't have to use Chase for your mortgage, but the sheer idea that you might, will give them a little more incentive to make this happen.

Best Wishes and please keep us posted!
Imran Mohamed November 6, 2011 at 1:19am

Hello Robert,

Ask your agent to do a detailed Market Comp and send this in together with your Counter Offer. Also let him do a biography of the property so the negotiator, asset manager, MI Company etc will see exactly what's going on. Remember they are sitting remotely and are just basically going by the mathematics.

Imran Mohamed
- Mark Gillaspy > Imran Mohamed November 6, 2011 at 5:25am
  
  Be persistant, Chase reps have alot of files on their desks and the more help you can give them the better chance you have at getting the deal done.