Los Angeles

[WBC]

I am completely delusional thinking I have a chance but thought I'd see what advice I can get back.

I am one of 10 that have put in an all cash offer on a property in Hollywood, it is a short sale and being offered much lower than 'current' assessed value. I am quite certain that all of the 10 offers are all cash.

It is simply a strategy of who offers the highest price? - or can we try to negotiate by saying that we (my husband and I) are first homebuyers, not investors, or developers. We can certainly go higher than our original offer price, but I am wondering about other tricks of the trade beyond $$$ that have gotten buyers over the line when there are so many offers on the table.

I don't want to get my hopes up, it's extremely unlikely, but anything that would maximize or chances?

Thanks a bunch Redfin Savy Readers!

[basschick]

---

WBC wrote:

I am completely delusional thinking I have a chance but thought I'd see what advice I can get back.

I am one of 10 that have put in an all cash offer on a property in Hollywood, it is a short sale and being offered much lower than 'current' assessed value. I am quite certain that all of the 10 offers are all cash.

It is simply a strategy of who offers the highest price? - or can we try to negotiate by saying that we (my husband and I) are first homebuyers, not investors, or developers. We can certainly go higher than our original offer price, but I am wondering about other tricks of the trade beyond $$$ that have gotten buyers over the line when there are so many offers on the table.

I don't want to get my hopes up, it's extremely unlikely, but anything that would maximize or chances?

Thanks a bunch Redfin Savy Readers!

---

the property isn't being "offered" for lower than the assessed value - it's listed for lower.  i have rarely seen any place we've looked at recently sell for the listed price.  don't offer based on the listed price; offer the value of the property based on recent comps.  places that are offered below their market value usually go up to or just above market.  honestly money talks, especially since even if the seller chooses your offer, your offer will still have to be approved by the bank/lien holder (s).

or offer a bit over the comps if you can afford it. 

while you can do things like offer a shorter contingency period or none at all (which i don't suggest), this is a short sale.  things go wrong even if you are the selected offer.  there could be 1 or more junior liens or the place could go into forclosure or the loan could be sold or the owners could end up getting their loan modified. 

or you could get the place.  but with short sales, it's never a sure thing, and is someimes a very, very bumpy ride.

[hoping2buy]

Sorry but if you're thinking that appealing to the sellers on emotional grounds--that you are first time buyers and want the house to live in, not flip, etc.--I doubt it will have any effect at all.  This is a short sale so the decision on what amount to accept lies with the bank, which is being asked to take a loss on their loan, not with the sellers.  The bank only cares about making that loss as small as possible.  I think the best approach is make the highest offer you believe is warranted by the property and that you can comfortably afford.  In this case, probably only money talks.

[Seneca]

---

WBC wrote:

It is simply a strategy of who offers the highest price?

---

Yes.

[Fishmarty]

With the saying 'cash is King', you want to pay attention to what 'cash' people actual say they have.

Could be 'cash' borrowing from relatives and just stacked in buyer bank last month?

But this is up to the short-sale bank to find out and you as another buyer wouldn't know.

I am saying when you know you have cash competitors and you also pay cash, try to show, in your offer package, that your 'cash' is real and can be withdrawn quickly. That 'cash' is not part your 401k or line-of-credit of your wish list.

[WBC]

Thanks to all for your comments and feedback.

Thanks Fishmarty esp - as you said I'm not sure if there is anything that I can do about the cash comment, except stress to my agent to highlight that our $$$ is all our own, easily accessible and isn't a gift, or part of a 401k. 

I guess cash isn't always just cash, but how you prove that my cash is better than theirs?

What else do banks consider - credit history, job stability, income, age aswell?

[Fishmarty]

Since you are paying cash, seller expects you to close in 15 days. If you can, put that in your contract.

You don't need loan so you are off that loan contingency. Then you have the inspection contingency and appraisal contingency to think about.

If you agent did a good job on comp and you are sure you will not kick yourself later on 'how comes I paid that much', go ahead to waive that appraisal contingency.

That leaves you only the inspection contingency. Now you need to guess if you want to waive that too to make your offer stands out.

And that is what I advised people time and again. Next time when you and your agent go see a house, do a quick inspection yourself (in front of your agent; I suppose you don't do it in an open house)! Put a flash light and a 6-feet ladder with you in your car. Look above the roof, down under, signs of water leak and damage, signs of termites, open that electrical box, ... If you can, ask list agent age of roof when you can...

This 10-minute inspection yourself gives you a much needed knowledge to decide if you can waive inspection contingency altogether.

[WBC]

Good suggestion, although I would never be confident enough to remove the inspection contingency...It's just too risky and we don't have alot of $$$ to spare to spend on repairing major issues immediately

Hope my competition aren't reading this though (^_^)

[GeneD]

If you want this house, you need to go in all cash with NO contingencies.  So spend a couple of hundred bucks and have it pre-inspected.  

[sheriff]

People rely too much on home inspections to tell you what is wrong with a house.  The home inspector is allowed to do a non-invasive inspection, meaning he can't look inside walls, remove electrical panels to check wiring, things like that.  They almost always miss something.  You can do a basic home inspection yourself, if you know what your doing, and not put the contingency in the contract.  That will give you a edge on the competition, or you can have an inspection done with the consent of the owner before you make the offer, if you are willing to spend the money.