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ModDot
PUMPKIN ALL THE THINGS
Member since 8/11 2196 total posts
Name:
Trissy
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Short Sale
On a short sale, do you typically do an inspection prior to getting an accepted offer? While you're still in negotiations? Our realtor presented our offer, they want to know that we're willing to go up so she advised us to get a home inspection so they know we're serious. I don't want to just throw money away, so I want to make sure this is legit.
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Posted 7/11/12 9:38 PM  |
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Diane
Hope is Contagious....catch it
Member since 5/05 30683 total posts
Name:
D
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Re: Short Sale
No...because if they dont approve it then you just lost out on $$$. We waited till the other bank gave us the approval.
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| Posted 7/12/12 8:28 AM |
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Re: Short Sale
With a traditional sale, you would typically do a home inspection after you have an accepted offer but before you go to contract.
With a short sale, the bank usually wants to see a contract before they will consider the offer. So you usually go to contract (subject to bank approval) before the bank considers your offer. You can wait on the home inspection (the contract can also be subject to an inspection), but I think there are upsides to doing an inspection immediately.
It will typically cost you $400-$500, but wouldn't you want to know whether there are major issues with the house BEFORE you invest the time and energy into waiting to get a short sale approved? It may take 6 months for the bank to say yay or nay to your offer, and then after that, you may do the inspection and find out there is a major problem with the house and you want to walk away. In that case, you just wasted 6 months and you could have avoided doing that and moved on with your search if you did an inspeciton at the outset.
Keep in mind that with a short sale, you are buying the house "as is" -- the seller is in financial distress and doesn't have money to fix things. Also, because a short sale seller has had financial hardship and usually can't pay their mortgage, they may have let things (maintenance, repairs) go with the house.
So there's definitely a risk that you will be out a few hundred dollars if you do the inspection upfront, but there are risks to delaying it, too. Not saying one decision is the "right one" but just that you should be informed.
But I think it's odd that the sellers are trying to get you up in price and you are going back and forth with negotiations. Usually, the short sale seller doesn't really care what the house sells for; they just want to sell it. So your offer should just be submitted to the bank. I mean, if the listing agent knows that the bank has already rejected an offer at that number, then it would make sense to tell you that the bank didn't take that, you should come up. But not sure why the sellers would really care otherwise and why they'd care if you do a home inspection now or later.
Do you have an agent that is experienced with the short sale process?
Message edited 7/12/2012 9:10:14 AM.
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| Posted 7/12/12 9:09 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Short Sale
I always advise my clients to do one prior to bank approval- if the house has a major issue- why waste the 6 to 9 months waiting for the approval- $400-$500 is a small price to pay for that- and in my whole career I have only had 1 inspection that made us back out of the deal-
Also- I list short sales- and if there is an issue on the inspection report I am able to use that to justify my price to the bank and get a lower approval then they might have wanted to give me
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| Posted 7/12/12 10:41 AM |
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ModDot
PUMPKIN ALL THE THINGS
Member since 8/11 2196 total posts
Name:
Trissy
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Short Sale
Thank you both! I just wanted to make sure my agent was on the up and up with us!
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| Posted 7/12/12 3:03 PM |
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ModDot
PUMPKIN ALL THE THINGS
Member since 8/11 2196 total posts
Name:
Trissy
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Re: Short Sale
Posted by Beth
I always advise my clients to do one prior to bank approval- if the house has a major issue- why waste the 6 to 9 months waiting for the approval- $400-$500 is a small price to pay for that- and in my whole career I have only had 1 inspection that made us back out of the deal-
Also- I list short sales- and if there is an issue on the inspection report I am able to use that to justify my price to the bank and get a lower approval then they might have wanted to give me
That's exactly what my agent wants to do, she wants to use the report to justify our lower offer
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| Posted 7/12/12 3:04 PM |
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ModDot
PUMPKIN ALL THE THINGS
Member since 8/11 2196 total posts
Name:
Trissy
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Re: Short Sale
Posted by Century 21 Dallow - Christine Braun
With a traditional sale, you would typically do a home inspection after you have an accepted offer but before you go to contract.
With a short sale, the bank usually wants to see a contract before they will consider the offer. So you usually go to contract (subject to bank approval) before the bank considers your offer. You can wait on the home inspection (the contract can also be subject to an inspection), but I think there are upsides to doing an inspection immediately.
It will typically cost you $400-$500, but wouldn't you want to know whether there are major issues with the house BEFORE you invest the time and energy into waiting to get a short sale approved? It may take 6 months for the bank to say yay or nay to your offer, and then after that, you may do the inspection and find out there is a major problem with the house and you want to walk away. In that case, you just wasted 6 months and you could have avoided doing that and moved on with your search if you did an inspeciton at the outset.
Keep in mind that with a short sale, you are buying the house "as is" -- the seller is in financial distress and doesn't have money to fix things. Also, because a short sale seller has had financial hardship and usually can't pay their mortgage, they may have let things (maintenance, repairs) go with the house.
So there's definitely a risk that you will be out a few hundred dollars if you do the inspection upfront, but there are risks to delaying it, too. Not saying one decision is the "right one" but just that you should be informed.
But I think it's odd that the sellers are trying to get you up in price and you are going back and forth with negotiations. Usually, the short sale seller doesn't really care what the house sells for; they just want to sell it. So your offer should just be submitted to the bank. I mean, if the listing agent knows that the bank has already rejected an offer at that number, then it would make sense to tell you that the bank didn't take that, you should come up. But not sure why the sellers would really care otherwise and why they'd care if you do a home inspection now or later.
Do you have an agent that is experienced with the short sale process?
It's not the seller we are negotiating with, it's the bank. They took our first (low) offer provided we are willing to come up (or something to that affect)
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| Posted 7/12/12 3:05 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Short Sale
Posted by retrochick
QUOTE]
It's not the seller we are negotiating with, it's the bank. They took our first (low) offer provided we are willing to come up (or something to that affect)
the bank wouldn't accept your low offer if you were willing to come up
the bank either accepts it or you do a value dispute -
as the listing agent- I will accept an offer I think is too low on a short sale if the buyer is willing to come up- otherwise it's a waste of time
I will do a value dispute to try and keep a deal together- but usually the buyer will have to come up a little bit but that happens after the bank comes back with a higher price on a short sale we are in contract on
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| Posted 7/12/12 3:15 PM |
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ModDot
PUMPKIN ALL THE THINGS
Member since 8/11 2196 total posts
Name:
Trissy
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Short Sale
oh that's what I mean, the agent is doing the accepting
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| Posted 7/12/12 3:42 PM |
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TyReseGreen
Lil Prince is here
Member since 8/11 6338 total posts
Name:
Theresa
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Re: Short Sale
When we purchased our home 3 years ago...we made a offer the seller accepted, but waiting for the sellers bank to approve our offer. Offer was made in early August had the inspection done in mid August and signed a contract in mid August as well. Well the sellers bank rejected our first offer, and wanted the full amount left on the loan, we presented a counter which they rejected again in the end we paid the amount remaining on the loan and closed the day before Thanksgiving.
I wish we had waited on the inspection and even the down payment, because we were stuck and if we backed out we would have lost the down payment. Hate short sales
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| Posted 8/22/12 11:33 AM |
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