Short Sale Realestate question.

[mrhappy333]

CT
So on July 2 I put an offer in on a house that i had previously put two offers in on.
Starting in last November the house was listed at 305k and I put an offer in at 270K they countered and said 300K, final offer.

Then this March they lowered the price 295k and i put an offer at 275k and they said 290k and they will take Everything out of the house. Stove, refrigerator, microwave, dishwasher, washer, dryer. etc this was not agreable and again, no deal

Now this past July they lowered the house to 259K subject to short sale approval, and I put an offer at 260k and all the appliances are gone and some other shit needs to be fixed. after 2 1/2 months they get back to us and say the bank wants to net 251k and if we pay another 7500 , then the 2 realtors will get paid 6% comision and some closing costs for a total price of 268K

17,000 seems a little rediculous for commision and there closing costs, never mind closing cost on my own Mortgage wich will be about 6,000

I am wondering if they are just trying to squeeze a little more $ out of me knowing I put in 2 offers more than this latest offer. and what the fuck, is 6% comision rediculous in this market.
I fucking hate this BS
I hope I covered everything.

[Galapogos]

That seems really high to me but the US and Canada markets are probably pretty hard to compare to one another.

[philly and the phanatics]

6% comission split for the realtors in USA is 100% standard

[philly and the phanatics]

and as far as shortsales go, the quickest way to describe a short sale is that the owner of the house owes more money on it than anyone is willing to pay and they basically take the offer to the bank who own the mortgage and are like "come on guy, is this enough".....generally speaking they are a huge pain in the ass and take a zillion years to close, you are much better off looking for REO (bank owned) property, unless you are like super set on that house.

[givememyleg]

6% comission split for the realtors in USA is 100% standard

yeah, and closing costs are pretty outrageous. for a 60k house you can expect to pay $3k in closing costs so a for a $250k house i don't doubt $10k+.

blah.

[givememyleg]

but considering your situation, it sounds like they are trying to squeeze you dry... counter offer meeting them half way with the costs/commission?

[chardrian]

you are the buyer here, not the seller and it is a buyer's market. If the deal doesnt meet your expectations tell em to fuck off.

Buyers don't pay the commission, the sellers do.

[philly and the phanatics]

you are the buyer here, not the seller and it is a buyer's market. If the deal doesnt meet your expectations tell em to fuck off.

Buyers don't pay the commission, the sellers do.

this is true idk why i didnt realize this....they may ask you to cover it though as part of the negotiation

[donkbee]

If the deal doesnt meet your expectations tell em to fuck off.

[supa]

What did the house appraise at?

[daven]

hardball yo
get it for $225 imo

i mean, they tried to screw you at the start, karma is a bitch sometimes

[EasyT]

I'm a real estate broker in Pennsylvania.
6% commission is commonplace.
Commission is usually paid by the Seller.
Short Sales can be a nightmare. The bank must approve the offer and they act by committee. A very very slow committee who seems to have no awareness of how expensive their own delays are for themselves.
The appraised value may or may not be relevant to a short sale, if no buyer is willing to pay fair market value.
Part of the closing costs that you did not mention are real estate transfer taxes, 2% in my state.
In a normal transaction using a realtor, I would estimate closing costs to be about 10% for the seller and 4% for the buyer.

All generalized information. Hope it helps.

[mrhappy333]

Hey, The appraised value came in at 285,000. they just called last night wondering what our decision was. I told them I was waiting to hear from the bank now. The listing agent said he is getting pressure to put it back on the market at 285k as a pre forclosure.
we were thinking of telling them take it or leave it.
If it goes into forclosure, I figure it would only get cheaper.
@Easy T the realestate transfer taxes i think are the closing cost they are talking about because it was approx 2% here also.

this shit is making me crazy!

[EasyT]

Closing costs include the transfer tax, but also other things like the appraisal fee, credit report, title insurance, recording fees, mortgage prep, etc. The taxes and the title exam/insurance are the two biggest items for the buyer. Title exam and insurance might cost around $1,300 for a property in the 175-185 price range. Transfer tax is usually 2%, paid half by the buyer and half by the seller, so $1,750 if you can get it for that price.

I hope you can hold the deal together as is. It'll be a lot easier than trying to buy it later after foreclosure. But if you have a surplus of time and patience, then you might be able to convert those assets into dollars in your pocket.

[mrhappy333]

Easy T, what makes it more difficult to buy a foreclosure?

[mrhappy333]

Well the deal fell apart. The listing agent said a New appraisal came back at 299k and they were going to relist it for that or we had to come up with more $$. We told them "No thanks" (pound sand and go fuck yourself) and we recieved our deposit back. The day we got it back our realtor called telling us the Listing Agent wanted to know if he wanted us to put some pressure on the bank to try and get the deal done at the $260k mark.
we said no thanks. we will wait for it to sit all winter and buy it cheaper if we are still interested in the spring.

[aletheaking52]

Hi...,

No, 6% commission is not a rediculous percent, it is better in the present market as we have to consider the taxes which have to pay.

[Monty3038]

I worked as a realtor for 14 months (gave it up due to income instability) in the late 90's... 6% is standard when two realtors are involved (buyers and sellers). When a bank is involved, and you have a realtor but the bank is selling the house, 3% is not unreasonable (for your realtor, not theirs). they may also ask that you pay their price then pay your realtor yourself.

They have a real problem though, they listed the house at 259, which is recorded in the MLS, and now are going to relist at 299? No one will offer more than 259, which is what they said they are willing to take... walk away... this is a mess and won't end well.

In 6 months, if still on the market, offer 245.

[KoRnholio]

They have a real problem though, they listed the house at 259, which is recorded in the MLS, and now are going to relist at 299?

lol ebay tacticaments.

[drmcboy]

[bjsaust]

I started writing up a full response, then realised this was old bumpage.

Did you buy it?

[BennyLaRue]

6% is standard

That doesn't make it not ridiculous.

[bode]

brag: got my realtor to list my house for 4.5%.
extra brag: he is doing about 300% more than my last realtor did to market and sell my house, and she was at 6%

[mrhappy333]

I worked as a realtor for 14 months (gave it up due to income instability) in the late 90's... 6% is standard when two realtors are involved (buyers and sellers). When a bank is involved, and you have a realtor but the bank is selling the house, 3% is not unreasonable (for your realtor, not theirs). they may also ask that you pay their price then pay your realtor yourself.

They have a real problem though, they listed the house at 259, which is recorded in the MLS, and now are going to relist at 299? No one will offer more than 259, which is what they said they are willing to take... walk away... this is a mess and won't end well.

In 6 months, if still on the market, offer 245.

Ha, This is just about what happened. They put it back up on the Market a couple weeks ago. We offered 245 and supposedly there was another offer which was a little higher. we sent back 250 final offer and if there is any more BS we are done.

Waiting to hear back now. This has been a 2 year process now.

[mrhappy333]

Unbelievable!! The Saga continues.
email from the listing agent:
quote"
In between this short sale he bought another home (which I found out after the fact) and was able to keep that current, while letting this one go. Why they did not know that then I have no idea. Now because they are all out FHA will only allow foreclosure. I was so angry because that meant we could have gone through the whole process and still lost it.
No idea on when yet. He is asking them to notify me so I can try to list it, but no guarantee there. What a colossal waste of my time (and yours, but mine more!) : )
Have a good weekend and I will keep in touch if anything else develops."

and now we wait again.........

[kiwiMark]

Unbelievable!! The Saga continues.
email from the listing agent:
quote"
In between this short sale he bought another home (which I found out after the fact) and was able to keep that current, while letting this one go. Why they did not know that then I have no idea. Now because they are all out FHA will only allow foreclosure. I was so angry because that meant we could have gone through the whole process and still lost it.
No idea on when yet. He is asking them to notify me so I can try to list it, but no guarantee there. What a colossal waste of my time (and yours, but mine more!) : )
Have a good weekend and I will keep in touch if anything else develops."

and now we molotov both houses in question and move on.........

fyp

[BankItDrew]

The listing agent gave you his sympathy and said that this whole ordeal was a waste of time?

Are the sellers Italian?

[mrhappy333]

Italian huh? IDK.. Is this normal for italians?

[mrhappy333]

fyp

Haha, brilliant.