I have found a short sale house in Shiloh il. The house appraised for about 155 they are asking 126. How do I get the best deal on this short sale? Should I offer less than 126? The house is really dirty and will not show well. It is not move In Ready but it basically just needs carpet and paint. How can I find out how much is still owed on the house. Should I offer what is owed? Are there any strategies for getting the best deal. Btw I am not flipping or selling this one. I'm gonna live in this house. I have never bought a short sale home before.
If it's a short sale they owe more than it's worth and the mtg balance is irrelevant. More relevant is how many mtg.s there are, and if there any other liens/judgments attached. The asking price is irrelevant to what the bank may accept. You need an experienced short sale agent who will lead you both through the process. The property will have to be listed for a short time (they'll play games so your contract gets submitted, as long as it's reasonable). You'll need a preapproval or POF.
If the home is already listed with an agent the best way to get the home is to make an offer directly with the listing agent. Hopefully they are experienced with negotiating short sales or they use an experienced negotiator. Given that is the case offer what ever you feel the home is worth to you and let them go to work negotiating with the bank to get it approved. The only problem is that if you don't have a good relationship with the listing agent they may not take your offer if a higher one comes in.......this is why we only offer on short sales that we find through our marketing (before they are listed). Then we hand the short sale off to our in-house agent and negotiator so that they can negotiate my offer and not an outside third party (that may or may not close).
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!