Replies to This Discussion

Permalink Reply by Brenda Houghton on July 24, 2013 at 2:39am

Hi Sharon,

Your strategy is on target.   A low offer is better than no offer at this stage of the game.  If the f/c sale is a week from today, you need to get an offer in NOW, along with a complete short sale package.  Just keep marketing the property for a backup offer so you have another to submit if the first is rejected.

Regarding the pricing on your listing - if you have had it listed for 2 weeks and this is the first offer you've received, I would consider lowering the price.  My rule of thumb for short sales is to price them to get a full price offer in less than two weeks, if not multiple offers (depending on your area).  With the new builds selling for less, you can justify your pricing to a BPO agent, especially now when you've received no offers at the current price.  If you lower your price, do it before the BPO agent comes.  It will help them provide the appropriate value for the home. 

 

Brenda Houghton, SFR

RE/MAX

 

Permalink Reply by Sharon Burgos on July 24, 2013 at 4:52am

Do you think it will "look funny" to WF if I lower the price today?  The same day that I received the offer?  I'd really like to lower it by $10,000 to get the offer price closer to the list price.  Just wondering if that would be any kind of red flag to anyone?

Permalink Reply by Sharon Burgos on July 24, 2013 at 4:55am

And we do have a 95% complete short sale package already submitted, they've got tax returns, paystubs, bank statements and financial worksheet, hardship letter all submitted to WF.  The only thing I was missing is the offer, accepted by sellers, and the preliminary HUD1. 

Permalink Reply by Mary Wilcox on July 24, 2013 at 3:47am

I would definitely submit it. Let WF counter it if they want more.  I'm thinking if you have brand new homes at 205-209 you probably should have priced yours lower, anyway. Food for thought. 

Permalink Reply by Sharon Burgos on July 24, 2013 at 4:50am

I wanted to list it lower, to try and get a multiple offer situation going, but WF told me I had to list it at market value, going by $ per sq. foot.  Since this home is 400-500 square feet larger than anything the builder has, and it's LOADED with upgrades, built in 2007, so practically new, $219,000 was the "fair market value" and actually on the low side of that, going by square footage.

Permalink Reply by Ben Benita on July 24, 2013 at 4:52am

Brenda and Mary are spot on - the foreclosure is roughly 1000000% more likely to get put on hold with an offer in.

I have some GREAT contacts at Wells and if you would like me to get involved and go to them directly, email me at [email protected]

Best of luck either way......submitting the low offer was the RIGHT thing to do !!!!!

Permalink Reply by Rosa Gomes on July 24, 2013 at 5:41am

@Sharon,

Put the offer in as the price does not matter right now. It is more important to have an offer and delay the auction date. I get super low offers all the time and they serve their purpose to delay the auction date and give me a value with an approved short sale. This allows enough time to hussle up another buyer as backup that you can put in place as soon as the investor drops off since they usually wont budge on their offers.

I chuckled when I saw what you considered a low offer.  I have one of my listings right now at $450K that got an offer for $250K, the value of the home in the condition it is in should be $325K- $350K but I have to start at market because it is WF.

Good luck! You have an offer so send it in.

Permalink Reply by Sharon Burgos on July 24, 2013 at 5:56am

Yes, compared to your discrepancy ($200k), mine doesn't seem so bad.  :)

Permalink Reply by Brenda Houghton on July 24, 2013 at 5:42am

Hi Sharon,

Has Wells already done a BPO?   If not, the bank really shouldn't be involved in determining the listing price of the property.  You are the real estate profession on the ground who has the market expertise, not them.  I do everything possible not to let the bank take the lead in determining the value of the property, including avoidance of 'proactive' or 'cooperative' type short sales.  The only one who can actually determine the value is the buyer.  A local Realtor is best positioned to predict this price point, not an asset manager in Des Moines, Iowa. 

Regarding lowering the price, that should be up to you when and how much.  Unless, of course, you have an Approval to Participate Letter with a stated sales price (FHA), or some other signed document with an agreed upon price model.  Then you would have to follow the model to which you and your seller agreed.

 

Permalink Reply by Sharon Burgos on July 24, 2013 at 5:53am

No BPO yet and I agree, they have no business trying to determine market value from where they sit.  We've got no Approval to Participate although it is an FHA short sale.  Our package was considered "incomplete" by WF since we did not have an offer, but now that we have one, I'll be interested to see what the BPO comes back at and if they try to change the list price.  I'm going to lower it by $10,000 today, if sellers agree, to try and get list and offer prices a little closer - and maybe drum up a few more offers as back-ups.