An informational source for people who are relocating, with a particular focus on moving to the Carlsbad area of North County San Diego (and nearby coastal communities), with advice, guidance and true stories to help you on your way and make it a great journey, from a REALTOR� with plenty of personal (4 major moves, most recently from Boston to Carlsbad, California) and professional relocation experience. Are you running into problems selling your home? Need to find a new one quickly? Never moved before and haven't a clue? You'll find some great tips on how to solve your relocation issues here. Or ask me a question any time and I'll share some solutions or tell you where to get more information.
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Carlsbad Homes - Short Sale Questions and Answers (Part 4)
Another commonly asked question about short sales (and it's a relevant question for any buyer trying to purchase a home) is the following:
I OWN ANOTHER HOME I NEED TO SELL - CAN I MAKE AN OFFER ON A SHORT SALE?
The short answer (sorry about the pun) is YES. Certainly you can make an offer any time you want.
But the more important question is whether this is a prudent thing to do.
Many sellers in this slower market with lots of inventory will accept an offer contingent on the buyer selling their current home. Not all, but some. Certainly more than in a seller's market. And there will likely be a 48-hour or 72-hour first right of refusal clause in case another buyer comes along with an offer, and you will have that time frame to remove your contingency or withdraw your offer.
A short sale is different, since you are dealing with the bank. The bank wants the best offer, and the cleanest one, i.e., with a minimum of contingencies., so they can sell the property, minimize their financial loss, and get the property off their books Thus, if you are trying to acquire a short sale and really want o be effective in doing so, chances are a contingency offer will NOT be viewed as a competitive one. Remember, the banks know what is going on in the market, too. My feeling is that it is a waste of time.
But if the short sale is languishing on the market and there are no offer, you might give it a try. Just don't be surprised if the bank does not accept it, and they might not even respond. Talk with your agent, and really think seriously about what you are trying to accomplish.
RE: Carlsbad Homes - Short Sale Questions and Answers (Part 4)
I placed an offer on a short sale about 6 weeks ago, and I still have heard nothing form the seller or the lender. I was told that short sales are time consuming and usually take a miniuim of 60 days to notify the buyer. Is this accurate??How can I find out if my offer was accepted or still pending?
RE: Carlsbad Homes - Short Sale Questions and Answers (Part 4)
Ricardo:
I woudl first hook up with a knowledgeable REALTOR.
You cannot simply choose to do a short sale. The lender will need to approve one and it has to be based on a documentable hardship (loss of income, illness, divorce, other financial, etc) that prohibits you from being able to make your payments going forward.
It is good that you are current on your mortgage, but doing a short sale will impact your credit (although not as significantly as being foreclosed on for non-payment). I woul dget in touch with your lender right away to find out wat you need to do.
If you need a referral to a qualified agent in your area please let me know - I have a great referral network.
RE: Carlsbad Homes - Short Sale Questions and Answers (Part 4)
Maxine - we do not use attorneys here in California. The process is handled through an escrow company. Certainly if one is concerned about legal matters a real estate attorney should be consulted.
I would think that having an attorney review the contract before approval would make sense since a short sale contract IS between a buyer and a seller. The bank is a 3rd party.
RE: Carlsbad Homes - Short Sale Questions and Answers (Part 4)
David:
Good question, and not an easy one to answer. In some markets short sales are selling at asking or above, depending on the market value and the appraisal (BPO or Broker Price Opinion) the bank uses to determine how much they are willing to accept. In others, and depending on the location and condition, they sell below asking. You can expect that there will be multiple offers which can also impact the final price, especially if people bid up the pricing.
I cannot advise you specifically since I do not know what market you are in, etc. I would get the advice from a knowledgeable REALTOR who can provide assistance with the offer strategy. The offers that are already in place can play a role here, too. If they are all above asking then you know what you need to do if you want the home.
If you need a referral to a qualified agent in your area, please let me know - I have a great network of folks I know all over the country.
RE: Carlsbad Homes - Short Sale Questions and Answers (Part 4)
Hard to say. The bank will decide on the merits of the offers as compared to the appraised value or BPO (Broker Price Opinion). Getting the most money is usually pretty important but depending on the decision maker they may be considering other factors, such as not needing a loan. After all they want to consider all their options to get the best deal. Best of luck.
RE: Carlsbad Homes - Short Sale Questions and Answers (Part 4)
I have a questions about pricing in short sale house... the stimate value of the house somewhere in 400 to 500K... the listing price is 350K.. sold as is.. The house was built in 2006...Problem with the house is they punch the wall, broke the door and windows (maybe 5 windows), the lights are distroyed, kitchen appliances are not there anymore, wrote something on bathroom wall and no heater tank... Do you think this house is worth the price of 350k or more?
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Another commonly asked question about short sales (and it's a relevant question for any buyer trying to purchase a home) is the following: