Home Buying in Wichita>Question Details

Lorihawley84, Home Owner in 67060

Can the bank raise the price on a short sale after the contract has been accepted? They want 5K more than asking price b/c of an appraisal.

Asked by Lorihawley84, 67060 Wed Feb 15, 2012

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Notable advice here. Although a property is advertised as a short sale it rarely means it is in fact approved for a short sale option by the holding bank and its investors. The listing agent needs an offer to open up negotiations or not, hence, possibly why it takes so long. Too many folks get caught up in this option "treadmill," and find themselves shocked when the bank comes back with a counter offer. Buyers beware. Good luck to you!
0 votes Thank Flag Link Fri Apr 20, 2012
Absolutely, as stated by the two previous posters. Truth of the matter is that banks often will not agree to a short sale until the Seller has an offer on the home. Oftentimes, the Seller is in a time crunch because foreclosure process is proceeding on their home. They may decide to cut the price low enough to get people interested. This helps them get the offer they need to get the ball rolling. The Buyers have to be willing to be patient through this process and should be apprised by their Realtor from the beginning that there may be more negotiations in their future.
0 votes Thank Flag Link Fri Apr 20, 2012
Absolutely, as stated by the two previous posters. Truth of the matter is that banks often will not agree to a short sale until the Seller has an offer on the home. Oftentimes, the Seller is in a time crunch because foreclosure process is proceeding on their home. They may decide to cut the price low enough to get people interested. This helps them get the offer they need to get the ball rolling. The Buyers have to be willing to be patient through this process and should be apprised by their Realtor from the beginning that there may be more negotiations in their future.
0 votes Thank Flag Link Fri Apr 20, 2012
Accepted by whom? The owner? If the answer is yes, then the answer to your question is also yes. The owner may accept an offer, but the bank has to approve the offer also since they are the ones agreeing to take a loss on the sale. Typically the bank orders an appraisal or a Broker Price Opinion and then negotiates the original offer from there. Sounds like this is what happened in your case. Your options now are the same as with any other counter offer, accept it, reject it, or counter with a counter offer of your own.
0 votes Thank Flag Link Wed Feb 15, 2012
Yes.....the contract is created when signed by the seller, but is contingent on acceptance by the bank. The bank as a normal course of business will have the property valued by an appraiser or realtor (in some cases both). As they are the ones taking the loss on the property, they have the right to determine the acceptable sales price. I know that's not what you want to hear, but that's the way it is...hope this helps.
0 votes Thank Flag Link Wed Feb 15, 2012
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