How Much Of A Discount???
I know everyone has seen this question before but here goes...
In our area house are approx. 125K and 5 years or less in age. Question is what size of a discount can we ask for in a Short Sale. Houses are sitting 6 months but don't need much for repairs. This is a LARGE neighborhood 3000+ houses. What type of % discount should we be asking for? We currently do subject-to's. We have a hard money investor who would get us the money. We will be buying a course on SS but I would like to know if the discounts are there is these tyoe houses?
Thanks
Sire
When devising a short sale strategy, you always have to put yourself in the mortgagee's shoes. What would make it worth their while to avoid the foreclosure process?
It's a balancing act. You have your own acquisition criteria that must be met to assure that you make a profit... as do they.
If similar homes are sitting on the market for 6 months... figure out the mortgagee's costs to foreclose, acquire, hold, market, and liquidate.
Once you know what it will cost them... and you can look at it through their eyes... you'll get a sense of what to offer them.