Experienced real estate professional, those who have been emersed in short sales for the past 4 years, know how to evaluate who is on the other side of the table. If it is a bank, the goals are different and one would structure their validation to align with the banks values (if they have any).
If it is an investor, especially a small investor, their will be yet another shoe to drop. A shake down of the current owner will occur in an attempt to find any sock drawer or under the mattress money...and this may be deferred to you also. Yes, they will sabotage a good deal with vengeful actions.
Did I mention 'Anything can happen?"
You need to assess what this house means to you. How much do you want it? Can you live without it (the first mandaory criteria for ANY short sale buyer) justify your offer with current supporting comps, highlight your contingency free, quick close offer, and/or the added pile of extorted cash your agreed to since this is the 'Wild, Wild, West" of real estate. Buckle up! This ride may not be over.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
This is like Black Friday, just because something is on sale may not make it a deal or it may be a great deal if it fits what you want/need?
What is the property worth in today's market? Hire a professional to represent you that can identify the true value of the property so you can make a qualified decision.
Short Sales are no fun but typically are well priced by listing agents to attract a buyer. The bank will only accept what they perceive as fair market value provided they satisfy all involved. All involved can include mortgage insurers, second loans or other property liens involved and of course the Investor (note holder) while paying all of the Seller's closing cost. Before agreeing to a number, banks perform their due diligence on Seller and the pending transaction, review all the available data in the immediate market and will order an Appraisal or a BPO (with photos) in determining the final price.
If this home satisfies your needs and is highly desirable then move forward. Here's why, if you don't walk away from your home inspection, you could still walk away if your lender's appraisal doesn't come-in at-or-under the agreed purchase price... or you can now take that appraisal, go back to the seller/bank and ask them to lower the price to your appraised value.
Your agent should have already answered these questions for you. Home prices and interest rates are at their best - This is the time to buy!
Basically if you are not willing to pay the bank's price, it's time to move on. You can counter the bank, but they can cancel the entire short sale and close the file. It's very difficult to find a property right now. I would not quibble over a 2% increase when the overall market in Phoenix has gone up over 20% in the last year. If you don't take this property, you will be back to months of searching - in the meantime, prices are going up over 1.5% per month based on the last year. Pick your battles.
Your agent can certainly negotiate back to the listing agent and see if you can settle in the middle. Banks are aware that values are increasing in certain markets and we as Real Estate Professionals are aware of this too. We are further aware that it will cost the bank money to put it back on the market....so...and absolutely you have recourse...you can walk away...
Real Estate professional
Best of Luck,
Century 21 Tenace