For a short sale, will a bank accept an offer less than what the house was appraised for?

Asked by Screenname, Chicago, IL Thu Jul 21, 2011

For example, what if the offer was at around 90% of the appraised price?

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Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Thu Jul 21, 2011

You can make an offer at any level you'd like, but the new lender will always use the lesser of the purchase price or appraised value in order to determine your loan-to-value (LTV). As far as financing goes, the LTV is the critical piece of the puzzle, not the purchase price relative to the appraisal.

If you have any questions, let me know.

Rob Spinosa
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Robert Quinn, , Scottsdale, AZ
Thu Jul 21, 2011
Yes and no. The answer is completely circumstantial. The banks goal in accepting a short sale is to mitigate the most amount of loss. If the appraisal came in over market value, or is simply to high for the buyer, your agent will have to dispute it. They will have to submit comps and an explanation. My best answer is yes...if you have an a good agent, they can make it happen. I work as a negotiator on a top short selling team in the southwest. I encourage you to visit my website for more information. I have several videos detailing answers to such questions. Have a great day!

0 votes
Greg Sarajew, Agent, Sarasota, FL
Thu Jul 21, 2011
Yes they will, I have closed many short sales that the bank was happy with an offer 85-90% of the appraised value. I am just closing on one this Monday and the bank is taking an offer that is 85% of value.
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Ron Thomas, Agent, Fresno, CA
Thu Jul 21, 2011
I think you're think BBACKWARDS:

It the house Apprasises for $300,000
and you want to offer $290,000
the Bank just wants to know that the house is worth AT LEAST as much as the LOAN.

If you wanted to Offer, $310,000;
you would have to come up with the $10,000 difference.

Got it?

Good luck and may God bless
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Thu Jul 21, 2011
You never know. In my area the banks are taking 3-5% below listed price. When was the appraisal done? Who paid for it and how do you know the amount of it. Banks often do a BPO or sometimes an appraisal but they keep the amounts pretty secret.
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