[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]
In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)
Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.
Then sit back and let karma run it’s course.
If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.
Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.
