This past week I have spoken to two Realtors who called to show one of my short sale properties. Both of them told me that their buyer was going to make an offer around 60 cents on the dollar. In fact, I just got one of the offers last night, the asking price is $850,000 and the offer is $700,000. The fair market value is around $825-$850k and the loan balance is $1.1M (the home was purchased in 2005 and it's in Davie, Fl).
The Realtor asked me if I thought there was a chance the bank would accept the offer and I told him quite frankly NO! The banks are not dumb, I have done many short sales and what I am finding is that they will accept 80% of the loan amount. I feel bad for Realtors who are dragging Buyers to many to an excruciating number of properties in the hope that one will bite. Unless the property needs substantial repairs, I fear they are wasting their time. I know there are many bottom feeders in our markets today but give me a break!
One agent I spoke to agreed with me, she has shown over 40 homes to her potential buyer and has made a few offers only to be rejected. If you are a buyers agent, please please don't waste your time with buyers who are not realistic and who believe that because it's a short-sale, the offer, no matter how low it is, will be accepted. I am finding, however, that short-sales are becoming very easier in South Florida and the lenders are becoming a little more flexible, however, I am now in the Charlotte NC market and I'm finding the short-sale negotiation to be a little more challenging because Charlotte has grown by around 6% in 2007.
