SANITY CHECK on short sale PLEASE!!

[joefox]

Would you mind taking a look at these numbers and telling me if I'm in the ball park for a short sale:

Analysis on Aden Creek

Probable Asking Price $98,000 (based on comps)
Negotiations $4,900 (5%)
Commission on sale $5,586 (6% realtor fees)
4 months to frclse/sell $2,400.00 @ $600/mo P&I
Fixes $2,000 (weak guestimate)
Depreciation $2,587.20 @ .66%/mo (value dropped 7% last year)
Interest not earned on $$ $1,500 (figure their money is tied up in this non performing loan)
Legal Fees $1,500 (guess for filing, foreclosure, etc…)

$$ Bank would get after sale: $77,526.80

Rough estimate is that owner owes the lender $85K. My initial thought would be to offer $60K and expect to agree on around $65-68K. Are there other factors to take off the bottom line that would work in my favor?

Thanks,

Joe

[Admin]

Joe,
I think you probably ended up with a decent number, but I doubt any "supervisor" or whoever it is that will be making the decision is going to pay any attention to depreciation or opportunity cost.

I'd recommend finding a legitimate way to bump your repair costs and legal fees as both could easily be low based on what you provided.  Also, you could throw in closing costs paid by the seller/lender.

I'm still trying to figure out this process for myself so take this lightly.  I think the mid to high 70's is a doable target so I'd recommend starting much lower.  That way you can end up where you want after negotiations.

hope it helps...

[David Alexander]

First...

You order a short sale package...

You fill it out... send it in, along with a contract/net sheet with your offer...

The say we need decide if they are going to entertain it...

If so, they say they need an appraisal....

They get a BPO...

They ask for full value of the BPO... even if it needs repairs etc...

You whomp them upside the head with things like....

The homeowner doesn't even owe that much... the repairs will cost you X... The taxes are X behind.... and Your commission will cost you X.... and anything else you can think of....

The right hand finally talks to the left hand....

The you can sometimes negotiate sometimes not....

If you offer about 82% of the BPO.... You'll stand a good cahnce of getting the deal excepted...

The key is hoping that BPO is low....

David Alexander