Short sales have to be approved by the short sale lender. An appraisal and BPO typically will be ordered by the short sale lender. If the pricing of the home is too, low the short sale lender may deny the short sale or counter the sales price.
Your real estate agent should be able to conduct research, called a "Competitive Market Analysis" or CMA, on comparable properties, to help you come up with an educated opinion on the worth of the property. If the short sale is priced too low donâ€™t assume the short sale will be approved.
I represent many buyers who have successfully closed short sale listings. Knowledgeable buyers can present an offer that will be approved by the short sale lender. Best wishes in your home search.
Prudential California Realty
NMLS # 6395
Financing Kentucky One Home at a Time.
I posted a blog recently that is an actual Q & A to and from a client regarding a property he had offered on before it became a short sale. Gives some insight into who controls what, and important considerations for a buyer and a seller contemplating short sale.
It won't prevent you from future frustration, but it does show why the answer you get doesn't make any sense to you.
All the Best,
Jim Sweat, ABR, CRS, GRI, CDPE, e-PRO, ILHM
Whenever making an offer, make sure your real estate sales associate has reviewed the comparable sales and listings with you so you know approximately what the bank is likely to want in sales price.
We would advise that it is not a good idea to avoid short sales. Feel free to contact us at ginny@MyVeroBeachRealEstate.com. Good luck with your search.
The problem may not have been one caused by the short sale process or the bank but one created by the listing agent and compounded by your buyer's agent.
The reason the lender countered with such a high offer is that the property was under priced to begin with. Who creates the original asking price? The lender has nothing to do with it but the listing agent with agreement of their seller established the price.
Unfortunately, you were the victim of being drawn in to a price that was too good to pass up...but a price that was not an accurate reflection of the current local RE market.
Working with an experienced buyers agent that is familiar with your target location should be able to guide to and away from short sale opportunities. Before I place an short sale offer, I make darn certain the asking price is one that is close to reasonable.
My recommendation is to not scratch this portion of the market but begin working with an agent that really knows their stuff.....
I guess i don't understtand why the banks are allowed to get away with all these shenanigans but they obviously do. For my part i just want something straightforward.
I keep hearing all these stories of people getting such great short sale deals. Perhaps these are just stories or fairy tales.
For too many reasons to list, less than 30% of listed short sales close as a short sale.
I just completed the number crunching for the 1st quarter of 2012 and the stats mirror those of 2011.
Choosing to put an offer in on a short sales is choosing to be on the team that loses 70% of the time. The average saving, when compared to traditional resale is approximately 20%. But, that is only realized if you are not on the team that loses 70% of the time.
Just recently I represented a buyer, who was thoroughly advised this is a bad idea, but the home was the only one available. There truly is a growing shortage of quality homes.
Listed at the reccomendatation of Bank of America at 700K
Seller offered 800K which was accepted by the owner, but the bank countered with 800K plus 100K for debt reduction (i.e. investor bribe) that will not appear as purchase price. (House price now at 900K)
Investor then comes back with $1.5 Million as purchase price.(90% of Bank of America's mortgages in FL were sold to investors. The idea the 'bank' is losing money in this crisis they caused is false)
Buyer offers 1 Mill even, a 300k increase over list price.
Bank and Investor reach agreement.
Seller (owner) doesn't like deal and tax ramification. No deal.
Five months down the drain.
The losing team gets the predictable outcome.
Dex, knowing this scenario plays our thousands of times a month across the country resulting in an average of 271 days wasted, an exhausted buyer and real estate professionals being placed in an extremely compromised position, how would you have responded to the following:
Your agents says, "I'll show you any home that is for sale. Traditional resales, new construction, bank owned and short sales. However, when it comes to short sales, because only 30% actually sell as a short sale, we need to understand the futility of this effort. Let me help you with acquiring a new home, If you choose to make an offer on a short sale, a non-refundable deposit is required which will be applied to the closing cost of any home you buy through me."
Would you 'run for the hills'?
Find a new agent?
Recognize the reality and skip shorties or pay to play?
I seriously look forward to your response.
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041