Determining Bid price on short sales

[sddodo]

Hello,

I would greatly appreciate tips on determining bid prices for short sales. I am looking at neighborhoods in La Jolla and Del Mar. Any idea where the broker’s price opinion would be in these areas compared to current comps? How much would banks be willing to take compared to broker’s price opinion. I have verified that the sellers have conventional loans with only one lender. I also have a strong cash position.

Any help would be great.

Thanks a lot!!!

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[sddodo]

Thanks a lot for the comments. I realize location, lender’s balance, BPO, etc all factor into eventual selling price. I am looking at a couple of places where I have a good sense of fair market value. Given that this is a short sale and I have to throw an offer, and wait, is there a rule of thumb on how much the banks will discount compared to BPO? Or what should I offer compared to BPO for them to take me seriously and negotiate with me?

Thanks,
pkdodo

[sddodo]

Thanks a lot for the comments. I realize location, lender’s balance, BPO, etc all factor into eventual selling price. I am looking at a couple of places where I have a good sense of fair market value. Given that this is a short sale and I have to throw an offer, and wait, is there a rule of thumb on how much the banks will discount compared to BPO? Or what should I offer compared to BPO for them to take me seriously and negotiate with me?

Thanks,
pkdodo

[sddodo]

Thanks a lot for the comments. I realize location, lender’s balance, BPO, etc all factor into eventual selling price. I am looking at a couple of places where I have a good sense of fair market value. Given that this is a short sale and I have to throw an offer, and wait, is there a rule of thumb on how much the banks will discount compared to BPO? Or what should I offer compared to BPO for them to take me seriously and negotiate with me?

Thanks,
pkdodo

[sddodo]

Thanks a lot for the comments. I realize location, lender’s balance, BPO, etc all factor into eventual selling price. I am looking at a couple of places where I have a good sense of fair market value. Given that this is a short sale and I have to throw an offer, and wait, is there a rule of thumb on how much the banks will discount compared to BPO? Or what should I offer compared to BPO for them to take me seriously and negotiate with me?

Thanks,
pkdodo

[sddodo]

Thanks a lot for the comments. I realize location, lender’s balance, BPO, etc all factor into eventual selling price. I am looking at a couple of places where I have a good sense of fair market value. Given that this is a short sale and I have to throw an offer, and wait, is there a rule of thumb on how much the banks will discount compared to BPO? Or what should I offer compared to BPO for them to take me seriously and negotiate with me?

Thanks,
pkdodo

[SD Realtor]

sddodo it is a tough call. The issue at hand is that every property is unique. I have seen BPOs done by imbeciles and I have seen other ones that are very accurate. Also how long have the places been on the market? I guess it is a speculative question and the issue really is up to the investors. Remember the negotiator gathers the package up and sends it to the investors and they give a thumbs up or down. Will they take something WELL below the BPO or not? I am not so sure that there is a rule of thumb. Sounds like you already know what the BPO is so how accurate do you think that is? When was the BPO done? Was the amount of the BPO given to you from the listing agent? Anyways you can pick a number and try to deal it out to them right? 5% a bit more or a bit less? Also are there any other liens? The net is what is most important to the investors so if there are no liens then you have more play in the BPO undercut.

[SD Realtor]

sddodo it is a tough call. The issue at hand is that every property is unique. I have seen BPOs done by imbeciles and I have seen other ones that are very accurate. Also how long have the places been on the market? I guess it is a speculative question and the issue really is up to the investors. Remember the negotiator gathers the package up and sends it to the investors and they give a thumbs up or down. Will they take something WELL below the BPO or not? I am not so sure that there is a rule of thumb. Sounds like you already know what the BPO is so how accurate do you think that is? When was the BPO done? Was the amount of the BPO given to you from the listing agent? Anyways you can pick a number and try to deal it out to them right? 5% a bit more or a bit less? Also are there any other liens? The net is what is most important to the investors so if there are no liens then you have more play in the BPO undercut.

[SD Realtor]

sddodo it is a tough call. The issue at hand is that every property is unique. I have seen BPOs done by imbeciles and I have seen other ones that are very accurate. Also how long have the places been on the market? I guess it is a speculative question and the issue really is up to the investors. Remember the negotiator gathers the package up and sends it to the investors and they give a thumbs up or down. Will they take something WELL below the BPO or not? I am not so sure that there is a rule of thumb. Sounds like you already know what the BPO is so how accurate do you think that is? When was the BPO done? Was the amount of the BPO given to you from the listing agent? Anyways you can pick a number and try to deal it out to them right? 5% a bit more or a bit less? Also are there any other liens? The net is what is most important to the investors so if there are no liens then you have more play in the BPO undercut.

[SD Realtor]

sddodo it is a tough call. The issue at hand is that every property is unique. I have seen BPOs done by imbeciles and I have seen other ones that are very accurate. Also how long have the places been on the market? I guess it is a speculative question and the issue really is up to the investors. Remember the negotiator gathers the package up and sends it to the investors and they give a thumbs up or down. Will they take something WELL below the BPO or not? I am not so sure that there is a rule of thumb. Sounds like you already know what the BPO is so how accurate do you think that is? When was the BPO done? Was the amount of the BPO given to you from the listing agent? Anyways you can pick a number and try to deal it out to them right? 5% a bit more or a bit less? Also are there any other liens? The net is what is most important to the investors so if there are no liens then you have more play in the BPO undercut.

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