Homeowner · Morgan Hill, CA · Member since 2008 · 4 posts · 0 votes
I'm about to make an offer on a short sale listed through a realtor. Since the property has been sitting for 100 days, the realtor said he'll submit any offer to the bank.
I'm wondering what sorts of "gimmies" you guys put in your offers that the bank will later negotiate away, and you don't really care, creating the feeling of a win-win for both of you. I'm talking about asking for things like money back at closing to correct a problem, or bank to pay for inspections, etc.
Real Estate Consultant · Member since 2008 · 792 posts · 30 votes
18y
From my experience, banks are not that naive. They don't really fall for "gimmees". However, to your point, I would work hard on showing the bank why they should take your offer.
For example, submit photos of any signs of distress on the exterior of the property, the interior, the neighborhood, etc...Give them every reason to do your deal. They don't really know what is going on, so paint a clear picture for them. In addition, don't be afraid to give your agent a helping hand. If the agent has allowed a short sale to sit on the market for 100 days, then that is a sign that they do not know what they are doing.
Help them gather market data to submit to the bank that shows your offer to be compelling. The bank is particularly interested in working out "fair" or "compromising", they are simply trying to mitigate risk. Without the right data, they will assume that owning the property is an acceptable solution. It is the agent/investor's job to convince them that they do not want to own it.
Good luck!
By the way, you might want to remind the realtor that it's their duty to submit all offers.
Loss Mitigation Specialist · chicago, IL · Member since 2008 · 15 posts · 0 votes
18y
I usually ask for 3- 4% Closing Cost Credits and have them pay the Taxes and any unpaid bills on the building. Make sure you so proof of these unpaid Utility bill to the bank. Also dont go crazy and ask for alot of gimmies. It will delay the SS process because they will ask for updated HUD-1. Also based on my experience most bank wont give money back, since this is a SS you are already asking for a discount. The offer that you made to the bank should have already factor those cost and your buying the building AS-Is, So you shouldnt waste time asking all that stuff.
Real Estate Consultant · Member since 2008 · 792 posts · 30 votes
18y
There is no way of knowing what the bank will and will not take. There are countless lenders in countless cities. They all have different policies and they change them frequently.
In general, the bank focuses on the bottom line. If you want to close deals, focus on the bottom line....for the buyer and for the bank.