How much over the listing price should you go on a short sale? I recently offered $15,000 over because of

Asked by Tamara Bessete, Lake Las Vegas, Henderson, NV Tue Feb 10, 2009

many upgrades and felt it was worth it at the time. With the marked dropping daily should I have bid so high?

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Len McGuirk, , Las Vegas, NV
Wed Feb 11, 2009
Hi Tamara,

I specialize in short sales and I can give you a huge piece of advice. Pay little attention to the list price of a short sale and focus more on the actual value of the home. This can be figured out by your agent checking the comparables in the community. Many agents and their sellers are listing their short sale homes so far under value, it is getting completely rediculous! Any agent that has an idea of what the value should be for a home should know if the short sale bank would even approve such a price.

The main factor in short sales is that the seller's lender will do a valuation (appraisal) of the property. This way they know what the market is like for that area. They then compare any offer on the table with the actual value of the property. This will determine their decision to either approve or decline the short sale. So be very careful when you see a property listed far below the comparables in the area. It can be very deceiving.

So to answer your question, offering more than the list price is not necessarily a bad idea. It just depends on the value of the home. You could stil be getting an excellent deal on the home, overpaying for the home or paying the actual value amount. Hope this helps a bit. Good luck!

Len McGuirk
Short Sale Specialist
Prudential Americana Group
Direct: (702) 203-6688
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