So Short Sales are starting to close in the DC area. For example in Arlington, last year only 3 had closed in a year (out of hundreds of attempts). Now not only have 3 or 4 closed in my building alone, but many more in Arlington.
If the agent knows what they are doing (ala, have closed a short before) the closure rate is betwen 70-80% now (no hard numbers, just my 2 cents).
Also these short sales are selling for FAR less than bank owned properties. The bank tends to accept a 15-20% reduction off market price.
So changing times, require changing strategies.
So this is what I want to start doing, and I want to hear the pros and cons and if you have done it before.
I want to start making offers on Short Sales that have been under contract for a few weeks or months (from agents with a history of closing them).
Sure, sometimes the listing agent will say "no more offers," but that is probably because they were flooded with offers at the beginning. But a month later... why would they not be open to an offer that is $10,000 or $20,000 higher? It will still be 10-15% below "market."
Heck, the higher the offer, the more likely the bank will accept it right? And that is the goal right?
Well one might say "But they are under contract and are obligated to sell to that buyer." Um, no. They are obligated to show that contract to the bank. The offer is contingent on the bank saying yes. No reason you can't show ANOTHER $10k higher offer to the bank at the same time. The bank would then reject the first off and accept the second offer (I don't know technically how that 2nd offer would come over. Would it be signed by the seller, or signed as a "bank up").
1) Have you done this? Did it work?
2) What do you think of the idea?
3) What are pros and cons to think about?