Home Buying in Los Angeles>Question Details

Lisalinn, Home Buyer in Los Angeles, CA

What if you offer more for a short sale home than the appraisal comes in as? Unfortunately, we trusted our agent.

Asked by Lisalinn, Los Angeles, CA Fri Apr 26, 2013

What if you offer more for a short sale home than the appraisal comes in as? Unfortunately, we trusted our agents recommend offer without an appraisal contingency which she also recommended. After research, confiding with a realtor friend who is outside the area, our figures are about 20k less than the house is worth. I'm disappointed in our agent, but we went in 25k less than what she tried to tell us to offer. We were way above the other 3 offers on the house, so this is why we decided to research the estimated value after we signed all the paper to begin the process. As of now, the BPO is being delay...interesting. Been 2 months, and the bank has yet to complete it. Any help?

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I have some more insight for you regarding your situation & know a bit better than most, in my opinion, I have a lot of experience closing short sales, 100% success rate in California. In that experience, the bank WILL come down to allow the sale to happen at a price that it will appraise for, so you can close on your loan. If you are the primary buyer & only your offer has been submitted to the bank

Please email me directly, there are some strategies that your agent & the listing agent need to follow to get this done. You don't need to give me a property address or anything.

I don't look back on this same Trulia posting for answers after mine.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
Short Sale Listing Agent
0 votes Thank Flag Link Fri Apr 26, 2013
Hi Lisa,
First, the banks will not order a BPO until the seller proves hardship and the bank is willing to move ahead with the short sale. The seller may be trying to do a loan modification in which case the short sale will not move ahead until that process has been resolved. With regards to the price, as long as you have your inspection and loan contigencies in place you should be able to get out of the deal, if needed. If the short sale moves forward you will need to decide rather or not you want to spend the money on the appraisal and home inspection knowing that your offer is over market. Prices have moved up over the last 2 months and you will have to moniter the situation. The fact that the seller cannot net any money out of the transaction they may be willing to lower the price to the appraised amount. I would have your agent inquire. Hope that helps.
Good luck,
0 votes Thank Flag Link Fri Apr 26, 2013
Not sure what type of help you're looking for...

I would never ever recommend a buyer purchase without an appraisal contingency..I know lots of agents are doing that right now...but its a disservice to buyers.
0 votes Thank Flag Link Fri Apr 26, 2013
Thank you Emily and Cindy. I'm relieved to know there maybe away to negotiate a fairer price, and Cindy, thank goodness you don't. What bothers me the most, she was pushing us to offer far more than we did. Thank god we had our wits, but unfortunate to realize se didn't have our backs.
Flag Sat Apr 27, 2013
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