Short sale lenders approve offers based on the fair market value of similar properties. That is why your offer should be based on the same value. The list price may be close the fair market value, or it may be way below. The only way to know for sure is to have your agent review comparable sales with you.
My experience, as a short sale negotiator, is that the short sale lender will be looking for an offer that is within 10% of the fair market value of the home. Now if we just had a crystal ball to figure out what the bank believes the fair market value to be, we would have many more approved short sales than we do today.
So go over the numbers with your agent and then make a reasonable offer. And if the bank counters, don't just cave in. I have seen deals where the bank counters and then still takes the original offer. As long as your offer is fair, stand by it. If you try to go low and the bank calls you out, then go up to what you know is a reasonable offer and hold there. Good luck and Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty