My Long "Short Sale" Story (Las Vegas: short sales, apartment)

Eyes · 01-03-2010, 09:57 AM

In September I was looking for a small home to buy.
I settled on a small townhouse in an older complex in Green Valley North.

A townehome/condo in need of work.
It needed most appliances, toilets and more than half the flooring replaced.
It appeared to have original windows and mechanics, also.
There were some repairable code violations and possible drainage repairs.

An offer was made below the asking price.
The counter offer did NOT request a higher price ..
Only some adjustments in what the "seller" would pay at closing.

A contract price was agreed and signed by both "buyer" and "seller".

The seller was represented by both a R/E Agent and a Lawyer.

I had my own R/E Agent.

After more than two months of waiting for the "paper work" from the "bank"...
I received notice that the "bank" needed more money than was contracted.
After much back and forth ... I refused to agree to pay the more than 25% increase above the contract as requested.

Had they requested a higher price at the beginning ... maybe more would have been offered.

Bottom line ...

I feel as if I was being manipulated.
I have trouble believing these "professionals" had no clue as to what the "bank" required.
I feel as if they were just hoping I would feel I had invested time or emotion and could be bullied into the increase.
I feel I was being strung like a catfish as they tried to reel me in.

This property went back on the market on Xmas day.
Do not believe the "on the market" numbers as posted.
Do not become emotionally attached to a "home" ..
.... they are more plentiful then cats !

There will be more and more coming on the market as the "paper work" is completed.

If you are coming from a cold climate .. traveling will feel like a breeze with out snow or very much rain.
DO check for flooding .. what rain there is will flood lowlands.
DO look at the amenities you will need and know they are fairly common.

If you have no family or know few people look for personal comfort.
If you are moving for your job .. the only real traffic is caused by volume .. not weather.
Don't worry as much about the "area".
Do visit after dark on weekends to see what happens after dark.

So ... the lease on the apartment has been renewed and the hunt will continue.

Please ... Wish me luck ...

P.S ... If you purchase a large home .. you are in danger of becoming a hotel and limo service.
Your guests may have a better and cheaper time .. staying on the strip.

smartygurl · 01-03-2010, 10:02 AM

Sorry it didn't work out for you.

adolpho · 01-03-2010, 10:05 AM

They did you a favor. Sounds like it needed 20K in repairs. I wouldn't go near a short sale; huge waste of time. Like you said, properties are like cats, now.

Eyes · 01-03-2010, 10:15 AM

Thanks ... I will look at my leisure and will not be manipulated.
I feel my agent will continue to give advise that is in my best offer and convey to any "seller" ..

My offer is my only offer !

Eyes · 01-03-2010, 10:24 AM

Found this while hunting from my east coast kitchen ..

New Homes Directory > Las Vegas > New Home Builders

olecapt · 01-03-2010, 11:04 AM

Your short sale story is not uncommon. That is why it is common to have offers on more than one property.

It is reasonably common knowledge that short sales are often priced about 10 or 15% below market. This is to attract a quick offer. One should however be aware that the bank will do its own pricing and may well up the price. When you get into pricing distressed places it gets even trickier.

It is becoming increasingly difficult to find anything on the market. Even shorts go to contract in under a week. Most of what is left is either classic or distressed in some way...A REO way over priced for example.

Eyes · 01-03-2010, 11:12 AM

Quote:

Originally Posted by olecapt

Your short sale story is not uncommon. That is why it is common to have offers on more than one property.

It is reasonably common knowledge that short sales are often priced about 10 or 15% below market. This is to attract a quick offer. One should however be aware that the bank will do its own pricing and may well up the price. When you get into pricing distressed places it gets even trickier.

It is becoming increasingly difficult to find anything on the market. Even shorts go to contract in under a week. Most of what is left is either classic or distressed in some way...A REO way over priced for example.

Thank you for your insite.

I foolishly counted on ethics and law.

You say put more than one offer ??
I did not realize it would be legal.
So I can write an addendum to back out for any reason ..
To include I have a better deal ???

airics · 01-03-2010, 11:57 AM

in a short sale, the bank decides the price which may not be the listed price... the asset manager knows the number because he has at least 2 bpo's (opinions), offers under the bpo's will not be considered if they are under and the sale is early... In short sales, you bid on many, wait a long time, and hope to get one.

olecapt · 01-03-2010, 12:14 PM

Quote:

Originally Posted by Eyes

Thank you for your insite.

I foolishly counted on ethics and law.

You say put more than one offer ??
I did not realize it would be legal.
So I can write an addendum to back out for any reason ..
To include I have a better deal ???

Effectively the buyer committment to a sale is always "soft" until after the due diligence period and the HOA docs are delivered. Your agent should use the GLVAR short sale addendum or similar to protect you in a short sale. In general I resist putting up more than titular earnest money on a short. Either nothing or $100 until bank approval. On bank approval the normal earnest money is put up.

I have seen some attempts to force a stronger deal on shorts particularly for cash buyers. In general I do not think it will work.

As Airics points out you really don't have a deal until the bank(s) agree.

And yes it is quite legal to have multiple offers out. You kill the others once one goes to hard contract.

sierramadre44 · 01-03-2010, 12:29 PM

I'm confused. It sounds like the OP said the contract was accepted.

Quote:

A contract price was agreed and signed by both "buyer" and "seller".
The seller was represented by both a R/E Agent and a Lawyer.

Under contract law that is consideration and legally enforceable.

Now Olecapt, you come in and say there is a soft and hard contract. Sounds like a lot of fishy crap going on here.