BiggerPockets

use that to your advantage, tell them that the buyer realized they were offering too much and that the market dropped even more while they were waiting approval.

submit your offer(please remember to keep you investor hat on at this point, don't think like a Realtor, you will screw yourself royally) and negotiate yourself.

Don't worry about the previous offer, make your offer seem like the obvious choice for them.

Again, I can't stress enough to PLEASE, PLEASE don't submit an offer just below theirs, submit an offer you can make money with, it's going to be hard for your Realtor brain to shut up while your investor brain is analyzing the offer price, just know that unless you feel uncomfortable with your offer, you're offering too much.

Good luck!!! I'm routing for ya

hell ya, right as I was submitting my offer :wink:

Exactly who do you work for again? This statement is the Realtor side of your brain needing a kick in the shins. Don't worry about hurting their feelings, trust me, they don't care about yours!

that investor was/is a cheeseball, I doubt that you ever closed a deal with that 'investor' or that, that 'investor' ever closed any of his own deals.

It doesn't matter what you offer, what matters is getting a BPO done, influencing the BPO to get a low price and then working it down from there.

50% of FMV. Remember, you're in this game to make money, not be concerned with what the bank thinks, they obviously don't know what they are doing do they?

Of course, I'm not eluding to that you will get it for 50% FMV but the absolute worst thing you would ever want to happen to you is have your first offer accepted!!!!!

Can you think of the one and only reason why you don't want your first offer accepted?

I am usually embarrassed with my first offer, & let me tell you why. If you're not embarrassed by your first offer, you offered too much. If the bank accepts your first offer, you offered TOO MUCH. If you go too high & they counter you (which they will) you wont have room to negotiate.

Great post Corry.

When you make your 1st offer on any short sale that you have control of the negotiations it should be low. Get debate over this point has gone on here on BP, but it is always funny to me that the very ones that advacate offering low numbers are the investors that are always here and answering questions.

We always make very low offers at first.

Working for a rehab lender I can say I see wayyyy too many investors bid too high on their projects. They make their money on the purchase price. When we work with an investor and they come to us with a purchase contact that seems too high for the area we get concerned.

Also, as someone that sells REO properties, on the lender sied, I can say that we typically go with the higher offer, unless the lower offer is cash as that makes us think twice. In addition, my experience with Chase is that they are very slow in the REO department and it sometimes takes them up to 6 months to make a decision.