How Should You Handle Multiple Back-up Offers with Short Sales?

[vachief]

...Short sales are a joke on the unsuspecting general public. The bank wants 100k and won't take less, realestate agents throw out a low ball listing price of 60k hopeing to create a feeding frenzy and drive the price to the banks figure. It's not working and wastes everyones time not to mention gas money. lol

[rewealthyone]

cont'd

so unless you are solely focusing your marketing and sales to an end buyer who will live in the property long enough for it to acquire an increase in value due to appreciation, (southern california not withstanding) it would never make sense to an investor to even look at a piece of property that was pre-approved at a sale price prior to listing..

[rewealthyone]

cont'd. FMV (fair market value) to an investor who is purchasing either to hold/flip ask for a higher % off from the bank because what they are calculating 4 is risk--holding costs b4 a re-sale, risk of cost fix/update and a % of profit. I would never allow an agent to pre-negotiate for me as an investor; and certainly not have bank approval of a sale $ that the bank would accept before MY due diligence at contract. Pre-negotiated deals to an investor do not have appreciation time to acquire $.

[rewealthyone]

to lyntomason: you're missing some of the basic tennants of doing a short sale, that is: 1. that the banks won't tell you what the BPO is...it's a guessing game--sorry 2. that doing a drive by BPO will always be higher $ than an internal--sorry 3. monthly depreciation based on how long the property sits on the market and lastly that the amount offered should be comensurate with a percentage off of the FMV--not an driveby BPO. In essence approval of a short is overpaying the bank in your scenario

[lyntomason]

THE WAY I WOULD LIKE TO DO A SHORT SALE:

1. Help seller get set up for short sale with there lender. Letters-Finances..etc. 1 to 2 months later.

2. Get Approval and BPO from lender. Lender says, the owner can do a short sale.

3. Now we can list property with an approved purchase price and S.S. Approval from lender.

4. No more playing games. It should be out lawed that homes can be listed before Short Sale approval.

5. HAFA is doing this, but I don't think agents or lenders get it.