Short Sale Comps?
The subject house is listed for around 70K. The bank is foreclosing on a VA loan. I offered 48K and the bank countered at 59K.
Can I use hud/reo sales as comps for the bank? I have a hud sale at 57k and reo's at 58k and 67k for comparable homes in the neighborhood.
Thanks
Send it in anyway..what have you got to lose?
Lend to you at reduced rate
Or tell you go away completely.
The more facts to back your offer the better to base their decision.
Stick to your price if it is more fair.
Explain you will allow them to even loan you the money even ,or take over the original loan over and make up the payments owed as an alternative.
That might put a sparkle in their eye to
A: Take your first offer,
B
C
Think:
If I was the bank what would I do?
O.K., you hit a major blood vessal.
The bank is agreeing to make a Sale.
A Short Sale is a Sale.
( Your Bank will be glad to remind you of this, if your Friend as a Realtor supplies you with some "Active" homes, as "comps", at the last minute. They're known to do this, no matter what you say you want. )
It's hard for just anybody to get Comps.
Breaking into investing and finding a Realtor that isn't just fed up with listening to a bunch of "Creativity" and spending their time running some investors around to 50 houses, all over the place to find a "deal". ( when, they think a married couple will buy the third house they show them.)
Those who know How to find Deals, know this is the LOONNG shot, to find "deals" and don't go this route, anyway. So, the Realtor customarily gets Newbies and are very nonplussed at the prospect of the latest Donald Trump. Even, if they give the Newbie a shot, their Broker is likely to have a cow.
So, finding a Realtor that will deal and be a Player with you, PLUS provide you with their "corner of the market - Comps", when Comps can, also, be a time consuming pain, is a big uphill, hit and miss a lot, goal, at times. Not to mention, if the investor they've run all over, later says to them, " I bought one of those houses you showed me !". Meaning- From Another Realtor !
Go with your HUD sales. They are a SALE.
Realtors will use them, when you want them to bring you a cash buyer, for "more than the HUD SALE ?", that took place, on another similar home nearby. = COMP.
You didn't ask about getting Comps from Realtors, which you may already have and I'm not telling you, you'll "find out" something you've known for years.
I'm attempting to emphasize the Pure Factual Value of negociating your Short Sale Offer, using HUD Sales, Sheriff's Sales-from court house records, ( the girl at the newspaper ran me off a years worth, that had been published, in the paper ), Handiman Sales, Contracts for Deed- from Divorces, etc., etc., etc. at a price that is in the arena, in which you are working. = Distressed.
All these are not only O.K.
Are you with me ?
These Distressed SALES have the real life values, with which, Banks are calculating their Acceptable Rate of Return, ( ARR ).
They look at - What percentage of their After Repair Value, ( ARV ), did other homes like this, bring at Commissionors SALES ?
Answer ? No better than the Fine Outstanding Offer you have presented them.
And the Distressed Sales / Comparable SALES, ( weather they came from the MLS or not ), PROVE it.
Are these values recorded on the MLS ? NOPE. Not all these Distressed transactions make it to any form of "listing ?", to find then factored into the MLS mix.
So, whats with the Realtor Comps rant ? I don't use them or need them.
I use Comparable Distressed Sales, if you will. ( CDS, if you'll really give me some latitude.)
Your Hunch is Dead On, my friend.
( Attention Newbies, frustrated over getting "Comps"- you've got what you need and what is preferable, to your cause, in the court house and newspaper. )
Alan