Offer on a short sale

So we saw a house the other day and after our walk thru the agent told us it was a short sale. It's in a great neighborhood, in good condition, but the basement was a wreck and the RE even told us an inspector had been in and there was a "minor termite issue".

So we are considering making a low ball offer on this short sale. We even hinted as much to the RE and he said it may be too low for the bank to accept but he does know they want to get it off their books.

My question-did anyone eve make a low ball offer on a short sale? Also-after making the offer we can clearly keep looking (and maybe make offers on other houses right)? We're not locked into anything until the bank accepts our offer?

TIA!

Re: Offer on a short sale

If you feel the house is not worth what the bank is asking, I would most definitely offer whatever you want.

When the Realtor says "the price is fixed", tell them to blow smoke and present your offer anyways. The realtors are supposed to by law present all offers, regardless of the price.

Re: Offer on a short sale

Re: Offer on a short sale

we put a low ball offer on a short sale that needed a ton of work. The bank ususally sets the asking price at what they need to get, from what I have heard. In my situation, there were 3 other people willing to pay asking price and had offers in to, so I don't know how it would have turned out.

Short sales are a complete PIA, and they are sold in "as is" condition. you need a terminate inspection and be able to pass to get a mortgage. If your going FHA this will be a huge problem, but even traditonal may give you a hard time. Since you aren't dealing with a homeowner, the bank will probably not fix the termiate issues, causing you to not be able to get a mortgage. But if you love the house, I suggest try for it! But Short sales take a really long time, and you could be waiting awhile just to hear back from them once your offer is submitted. And I don't believe they counter, they either accpet your offer or don't. Also, if its listed in as is, you need to do a home inspection prior to putting in an offer, since you are agreeing to those as is terms. They will not allow a home inspection clause in a short sale offer.
GL!