The home was listed on the MLS with 5-10% drops every 2-4 weeks, and no offers for a total of 100 days. Plenty of lookers but no offers.
The first offer was received and accepted after 104 days on market, at 9% less than the last list price, which had been dropped most recently 19 days before the offer.
Short sale package has been received, and the bank has ordered a BPO. The bank is IMB.
Question:
Does the listing history and offer have any bearing on how the bank sees the fair market value? It seems logical that this would be one of the most directly relevant ways to assess FMV of a home, as it is showing what the market thinks of this particular home, regardless of the BPO, however I realize the short sale process is anything but logical.
Would it be common for the bank to counteroffer above the last list price, even though it did not get any offers when on the market? This would seem counterintuitive.
I am sure it has happened, but I would love to hear the thoughts from some of you who have experience closing a number of short sales as to if the DOM and listing prices prior to the first offer has a significant bearing on the acceptance of the SS offer.
Thanks
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Indy counteroffered at 1% below the last list price. My realtor recommended that I not counter their counteroffer, even though it was 70K higher than my initial offer, because "the listing agent is getting antsy, and now that he has an 'approved' short sale price he can just put in on the market, and sell it fast to someone else, so we should probably just accept the counteroffer at full price or we might lose it"
So we accepted the full price counteroffer from Indymac via Servicelink.
Now what happens?
Was the counteroffer price already something that the investors should accept?
Do most sales that have gotten to this point close, assuming the inspection and financing goes through, assuming I don't find something better and walk?
My realtor doesn't want to call the negotiator to ask any questions as he says it is the listing agent's job, however the listing agent is "very slow to respond to anything" according to my agent.
I have the negotiators phone number- will I screw anything up if I just drop him a line and see if he can give me some general answers about how the process works, i.e turn around time to get an approval letter after a counteroffer is accepted, etc?
Our lease is up on May 30th, and we are trying to figure out our living situation for the next few months while this deal crawls along.
We are 90 days since file complete to Indy. I realize other short sales take much longer, but as someone just looking for a good house for my family, short sale or not, and not someone looking for a great deal or investment property, this has been an emotional ordeal that I don't think I would repeat again.
In my experience, IMB is happy to foreclose.
I've seen it both ways. I just got a property accepted that the last listing price was $158,000 for $115,000. In this case the $158,000 was not the true value because of the work that needed to be done and the agent really didn't take that into consideration before she listed it. I've also seen agents list and do progressive price drops and then finally get an offer, and to me, I DO think a BPO agent needs to take that info into consideration because you can clearly show the list price in that case out of the gate was too high. I do think in most cases list price affects the BPO price which affects what the bank wants to ultimately net. However not every case is the same. In my example of the $158,000 list price, the BPO came in at $175,000 and yet the bank took $115,000. Doesn't make sense on the screen right?? Well, the BPO was WAY out of wack and the list agent was able to PROVE the property had MAJOR issues that the BPO agent never reported and yet, it was clearly pointed out to the BPO agent.
There is never a one size fits all in short sales, but I would say overall the list price has SOME baring on value, but is only one small variable.
I have occasionally gotten an intelligent negotiator who understands the details and have provided listing history to prove our case. Not often but it happens.
Interesting. So what happens if the BPO comes back above the last listing price? Back on the market to sit I guess.? Seems very counter intuitive to me.
In my experience the Listing History matter not.