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Lake Mary / Sanford Short Sales are they really worth it?

By Heather the Realtor Orlando, Lake Mary

Real Estate Broker/Owner with LemonTree Realty

February 08, 2009 09:46 AM

This is a story of a Sanford area Short Sale that went arye. I have been working with a great couple. They are newly weds and newly expecting. This couple found their dream home in downtown Sanford historic district. A stunning 3 story home full of charm and history built in 1901. At the time the list price was $165,000 and had been on the market almost a year. It needs work but has huge potential.

Buyer's just because the house is listed at one price and you offer full price this means absolutely nothing. The bank did not set the price and rarely ever do in the short sale process.

We made a full price offer on this Sanford Short Sale and willing to wait the long haul, unfortunately the agent doesnt have the buyers sign the contract which means the house remains on the market to amass more buyers. They then lowered the home to $139,000 and received too much interest so put the price back to $165,000.

I had explained to them short sales are anything but short and often times takes months just to receive an answer, but this house was so perfect for them that they were willing to wait. So we did just that, we waited and waited and waited some more. Through numerous bpo's and asset managers. Finally the day came last week over 4 months after our initial offer was placed.

In some strange world this home's appraisal came back at $230,000. I was shocked and cant find the comps they used to obtain that price. The asset manager is dead set that they will accept nothing less that that price. Are you kidding me? At $165,000 they only received one other offer besides ours and they want $230,000. We maybe currently down but we arent out. The buyers wanted to have a home inspection in hopes of swaying the asset manager with the list of repairs needed to be done to the home.

Buyers remember when looking to purchase a short sale in Orange & Seminole County.....

You must have tons of patience four months for an answer to your offer isnt out of the ordinary, be prepared to possibly spend more then the offer you submitted and depending on the listing agent continue to compete with new offers that come in on that property.

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Sheldon Neal

Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ

That British Agent Bergen County NJ

That sounds a little crazy ?....what did your comps say the home market value should have been ???

Feb 08, 2009 10:40 AM

Heather the Realtor Orlando, Lake Mary

LemonTree Realty - Orlando, FL

First Time Home Buyers, Bank Owned Homes

With condition and everything no more then $175,000 even the agent that listed it agreed.

Feb 08, 2009 10:48 AM

Sheldon Neal

Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ

That British Agent Bergen County NJ

... so then your buyers' $165,000 should have been a no brainer - that's really strange.

I have a somewhat similar SS where my buyer offered $155,000 on a condo with a list of $175,000 (comps say it should be right around $175,000) but the bank just said this week it wont budge from $175,000 ??? ... It's wierd, I havent seen the banks stand like this in the last few months on these negotiations.

Well, good luck, yours sounds bizarre at such a high appraisal difference ...

Feb 08, 2009 11:07 AM

Wayne Johnson

Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX

San Antonio REALTOR, San Antonio Homes For Sale

I think the Asset Managers bonus must be affected by the sales price. In some cases I've seen, there is a real disconnect between what the bank expects and the current fair market value.

I suppose it will get worse before it gets better if the banks continue to slow roll decisions and the number of available properties increases.

Your statement on patience cannot be overemphasized.

Thanks for your perspective.

Feb 08, 2009 11:10 AM

Richard Weisser

Richard Weisser Realty - Newnan, GA

Richard Weisser Retired Real Estate Professional

Heather...

So now that they know the bank will not accept less than the $230,000 ...did the listing agent raise the MLS price to that amount?

Feb 08, 2009 12:45 PM

Simon Mills

Mills Realty - Toluca Lake, CA

Take a hard line approach and give the listing agent comps to justify your price. Make sure you sell the point that when the property becomes an REO they will take a larger hit in this declining market. I've had this scenario happen to me and it took some time, but my clients were able to get the property at the price they wanted.

Feb 08, 2009 01:12 PM

Lise Howe

Keller Williams Capital Properties - Washington, DC

Assoc. Broker in DC, MD, VA and attorney in DC

Keep us posted on what happens. It is so frustrating when the bank won't tell the listing agent ahead of time what they will take so the agent markets it at "market price" - what we see as a rational price - the buyer makes an offer maybe even at "full price", but that isn't what the bank now reveals that it wants - ARGH! Can any loan officers explain the banks' thinking????

Feb 08, 2009 01:32 PM

Heather the Realtor Orlando, Lake Mary

LemonTree Realty - Orlando, FL

First Time Home Buyers, Bank Owned Homes

Richard - Yes it was

Simon - We did that, we have also had a home inspection which we are now going to send over to the asset manager to show how this home is in poor condition and by time they take it back will be worse yet once it goes through the upcoming humid and hot months here in florida.

Feb 08, 2009 10:31 PM

Rob Arnold

Sand Dollar Realty Group, Inc. - Altamonte Springs, FL

Metro Orlando Full Service - Investor Friendly & F

Short sales can be pretty ridiculous.

I do have one of the Fannie Mae pilot program properties listed. Supposedly Fannie Mae approved the price at $119,900. The only problem is that I can't get any showings at that figure because there are lower listed prices in the area. Kind of a catch-22.

Feb 09, 2009 06:36 AM

Debbie Summers

Charles Rutenberg Realty - New Smyrna Beach, FL

Heather - Short sales are only for the patient... Sounds like you've done everything right and someone who's never seen the house before is going to pass judgment based on a piece of paper. It's so frustrating... I hope that this purchase works out for you and your young couple.

Feb 10, 2009 06:11 AM

Chuck Willman

Chuck Willman - Alpine, UT

NewHouseUtah.com

Ahhhh... short sales. They are so fun; aren't they? It's amazing to me how much credence is put into a bpo, especially when it is an extremely flawed one.

Feb 13, 2009 02:01 AM

Satar Naghshineh

Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Here's what I would have done to get the house as a buyer's agent: Find the lowest comps you can find. Then get a high repair estimate on the property. Then for this price range, offer 20k + repair estimates less than the cheapest comps. So if the low comp is 150k and repair estimate of 10k, then I would offer 120k. Now, have your buyers tell the owner if he/she submits only thier purchase offer, they will give the owners 1k-2k for a piece of furniture. You can then tell the listing agent (if need be) that your buyers will gaurantee the 6% commission. Finally have the listing agent or yourself meet the BPO and give them 3 active and 3 sold comps to justify your purchase price. Then give them the estimated cost of repairs from a licensed contractor.

There's more, but this is the way to not to worry about other purchase offers and to have the bank's appraiser come to terms with your purchase price. The only way you will lose the property is if someone rents it back to the owner or if someone gives more money to the owners.

Feb 14, 2009 12:51 PM

Paul Gapski

Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA

619-504-8999,#1 Resource SD Relo

Well sometimes i dont know what to think we short sales. They are getting better and then they are not

Aug 04, 2011 07:09 PM

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