My last question wasn't understood. What I want to know is in a situation where I offered $65000 on short sale, and 5 months later, B of A counter-offered $90000, would a $73000 counter counter-offer be perceived as week or strong?
Thanks! I need some help.
You need to be a member of Short Sale Superstars to add comments!
**********************************
like buttons
Replies
BPO's, bank attitude and some investors attitudes have been and continue to be a big problem for short sales. The majority of BoFA numbers that I get (usually not FHA) are absurd - 25% to 50% above the top of the market. I just accept that whatever they want has nothing to do with realty reality and start from there.
You ask your question like this is a poker game. That is one problem with the bank's insane attitude is that they do the same thing - push BPO agents for big numbers, embellish and demand contributions on top of it and assume that everyone is so stupid out there that they will simply fork over the money.
You want to be smarter than that. Get real honest comps. How does your offer look compared to what others are paying? Look at the differences of the houses as appraisers need to do. Does yours have 1 more bathroom? Is the basement finished, etc.? Each has a $$ amount associated with it in your market at your level. Are the comps saying that you should be paying $65K, $73K, $90K for the property? Get as close to absolute numbers as possible. That is the best protection for you in 4 years when you want to sell, etc. At least in our market in the East, banks go for the "greater fool" theory - until the buyer goes to his bank and the property appraises for $20K less because that bank doesn't want to be stuck overpaying to BofA. It is not ALL up to you unless you are paying cash.
Once you feel sure of the value of the property, you won't care what the bank says, you will know that you don't want to pay $10K more than it is worth and you will know if you are getting a real bargain from them (unlikely, usually).
For example, I have a file that had an offer of $210K. BofA countered $320K which was $8K more than the seller owed and wanted $5K cash contribution - apparently as a tip for being so nice over the years. I **tried** to explain to the negotiator that if the homeowner could sell it for even less, it would not be a short sale and that tipping the investor an extra $5K cash on top of it makes no sense. Her response was take it or the sale will be denied. (That is a comment on the state of the current BofA negotiator - logic has nothing to do with their world these days.). We put in a BPO dispute - a property with finished basement sold for $220K, in better shape. This one with radon problem (10 times the likelihood of lung cancer), mold and in some disrepair with unfinished basement, BofA denied at $210K. However, they sent out another BPO agent (buyer walked in disgust by then - a month later). New buyer, counter from BofA $275K. (Think about that - from 1 BPO to the next, $320K to $275K - and they treat these as if they are in stone.). Because they took so long, we cannot dispute with our "old" comps listed above and there have been no recent sales. Get the point? Their numbers can be all over the map - you need to **know** the value and not count on them. They won't be there in 5 years when you find out you way overpaid and now want to sell, right?
Shayla, I feel for you I really do and would caution you that you may be too emotionally invested in this. Terms like "dream house" are emotional and I hate to see you lose this home and have it crush you emotionally. Dream home and budget usually don't mix
On a budget is a good thing, spend what you are comfortable with. If the market is really still going down in your area, why not wait and find a better deal to stay in your budget? On the other hand, if you were to accept their 90K counter, how much more would the property cost you per month?
you have recieved some great advice from both short sale agents and someone who works in a short sale department, dont take offense to it, use it to your advantage.
No way to know what their disposition will be. How badly do you want the property? Is it worth $90,000?
According to my educated and calculated guess, the FMV should be between $81850 and $85500. I've done some calculations and I'm thinking I'm going to counter the counter offer with $75500 to start off with, but I won't go above $83790.
Now I'm just trying to figure out if I should just respond with my highest and best final offer now, or should I start with the $75500 and hope that they accept it or respond with another counter offer. If they do give me another counter offer at that point, would I be wise to just accept it, or THEN give them my highest and best?
I want the property very badly... it's my dream home. I plan on raising my first child in the beautiful country setting. I also want to have a small farm on the property. I have long-term plans for this property. I don't want to lose it, but there is absolutely no way I will accept their $90000 counter offer right off the bat.
It is in a very rural area and everyone is afraid to buy there because of the flood plain issue. The market is not getting better. It is much worse now than it was when we started 5 months ago.
Make your best offer and stick to it! Don't get emotionally attached and think of it as a business situation just as the bank that has to approve this is doing.
When you say the market is getting worse, how do you know that? How much has your market declined in that time?
What is the issue with flood plain? 3/4 of my market area is in the flood plain :)
If they countered at $90,000 and the value is close to $85,000 then a counter from you of $75,500 will be more than likely be rejected. After 2 counters without an acceptance the file will be closed.
If the property has a value of $85,000 then that's what I would counter at.
What it gets down to is what is the property worth to you?