[modhatter]

Bidding on short sales. Any realtor or buyers have any recent experience with bidding on short sales? I know you don't underbid, but how much over is average. I was reading a comment by someone on a recent article, that said that they were outbid so many times that they eventually had to go up to over $185,000 to get awarded a short sale advertised for $150,000. That's a hefty increase. Are these short sales commanding those kind of increases, or was it just perhaps the individual who was commenting.

I know about the time factor, and how many don't go through, but I am trying to gauge price somewhat. Has there always been this much spread, or is it just recently since supply seems to be drying up?

[von949]

How bad do you really want the home?
What is the official appraisal?
What is the home worth to you personally?
Is it to live in or investment?


All of these questions factor in the short sale bid. "Overbidding" seems to be the norm for some properties, not all. There really is no such thing on overbidding on a home listed for $150,000 that is worth $200,000 yet once sold for $420,000.

[modhatter]

I understand what your saying, but I would think some realtors must have a better feel than I do for this. I understand that a property that's not in the most desirable location or condition may not get bid bid up like one in Summerlin with a sexy pool and back yard. But I am curious if there are any realtors reading this that might share what they have experienced.

Or for that matter, investors who have bid for rental properties.

[eventusstultorummagister]

Originally Posted by von949

There really is no such thing on overbidding on a home listed for $150,000 that is worth $200,000 yet once sold for $420,000.

Malarkey...

[modhatter]

Originally Posted by eventusstultorummagister

Malarkey...

Agreed. That was the market then, and this is now, which is different from the market last year, and the year before that.

[Scott456]

I once was tempting to bid on a property listed for $175K. My real estate agent's advice was to bid at least $181K. I procrastinated.
This owner accepted an offer of $165K in 10 days on the market, and was approved by the bank and sold for this amount in 3 months. This was in Silver Spring near Green Valley Pkwy in Henderson.

[BBMW]

What are the recent comps? That's what will drive any decisions. If the asking price is too below market, they're doing it to draw a bidding war. It may be worth participating, but only to the point of market value.

[modhatter]

Scott456. When did this happen? Did you get the house or someone else?
Sounded like someone else got it-No? The listings now for short sales say not to submit a bid below asking price as they will be rejected. That's why I'm asking you when. Thanks

[Scott456]

Originally Posted by modhatter

Scott456. When did this happen? Did you get the house or someone else?
Sounded like someone else got it-No? The listings now for short sales say not to submit a bid below asking price as they will be rejected. That's why I'm asking you when. Thanks

That was July of last year. As I said, I procrastinated and didn't put in an offer in time (my agent suggested adding $6K over asking price). The seller accepted an offer of $10K less than asking price. I assumed that was the highest offer at the time. The bank actually approved it.
I was a little upset then, but am over it now.

[irishspy]

Here is the key the Bank Approved it. The seller can slap any price on it and call it a short sale. The place then gets an offer and then an BPO is done The bank then counter offer which is usually the asking price or more. It depends on how much is owed on the mortgage. I am doing a SS now I bid $5,000 under asking price. Owner and agent accepted it. BPO done by bank counter was original price. They did accept my request of $1,000 towards the closing cost. So I accepted it. I am paying cash also. I did not want to start from scratch looking again or get into any bidding wars. To Scott 456 I would be pissed also You may want to use another agent it seems the one you have steered you in the wrong direction. If you get rejected on a bid you can re-bid or counter. Good luck