I have a short sale property in CA that is in very good condition. 4 bd, 1800 s.f. and in best school district in the county but still no offers. Agents say property is worth 450-500K but owe 455. Need offers to give to the bank before they foreclose. What is the best plan to get interest? Believe the bank will take a fair amount less.
Flipping Mad on this one.
You make a real, bonafide offer and back it up with some proof that you can close the deal and get it done. That will generate interest by the bank.
Why are you “flipping mad” about this property? Unless you can pick this up for at least $110,000 under ARV (assuming your Realtors are right), I wouldn’t get too excited. If you’re looking at major repairs, increase that amount.
If I read your message correctly, you are seeking advice on how to create buyer interest in a property that has no offers in order to avoid foreclosure.
Is this correct?
Assuming so, it time to pile on the incentives to differentiate your property from the others on the MLS (your realtor should be recommending this).
Some common buyer incentives that have proven effective in this market are:
- Pay mortgage closing costs; offer a no cost mortgage
- Offer a below rate mortgage rate (with an interest buydown program) or offer to pay discount points.
- Offer to pay X amount of mortgage payments for the new home buyers.
These are some of the incentives builders are offering to lower their inventory, and although you can’t offer free upgrades (like the builders do), you can still offer additional value in the way of reducing the cost of entry for a new prospective home buyer.
For more creative ideas, check out this article that was published in the USA today (http://www.usatoday.com/money/economy/housing/2006-07-27-new-homes_x.htm).
Hope this helps.
Regards,
Scott Miller