It is recomended that yo have a buyer broker who is well expereinced in short sales, make sure you hvae at least 3 months to wait for an answer and have the patience to get through this process.
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HOW TO GET YOUR SHORT SALE OFFER APPROVED
You should have an agent help you in this process. Short Sales are anything but short and have a lot of hurdles to be cleared. Your agent can find out if there were previous offers that fell through and for what reason. That will give you an idea of what you are looking at. How close to list price depends on how long its been on the market and if there were previous offers.
I have found that Short Sales very often end up Bank-owned. I for one would rather deal with a REO property. It is almost certain of closing within a reasonable time. Short Sales drag on forever and after the long wait if we ever do get an answer, it is for more paperwork.
If you have an agent, have him provide you with comps of similar homes for sale, pending and sold within the last 90 days. Then have him/her contact the listing agent and see if the bank has set a minimum price for the property they will accept, and if so, is it justified and can you afford it.
If you dont have an agent, this is how we earn our living, hire one and get the job done right the first time around. These are no cake walks. Dont expect any professional agent to tell you over the internet.
If the price is an "approved" price, the seller may not try anything below the list price--unless no offer arrives after a couple of weeks.
If the price is not approved you can offer any amount the Seller is willing to submit to the lender. The lender has the final say on how low they'll allow it to sell. Some lenders are less prudent than others so you could get an exceptional deal. Most lenders cannot let it sell much below market value, though.
Your best "deal" (as long as you don't mind doing a little work) is a bank-owned property. The price is genuine and as long as you submit your offer the first day and you have a good agent to advise you on what to offer and how to structure your offer, you will get a great bargain.
All the best,
Alma Rose Kee
Future Home Realty
Your best offer is one that is arrived at through a process of collecting information about the home and recent market activity for similar property. Your offer may not need to be the full appraisal amount but should be within shouting distance for the lender to consider you a serious buyer. Keep all offers real and ones you can back up with documentation!
I'd be happy to help.
Fred Miller Group
2905 Corinthian Avenue
Jacksonville, FL 32210
Here in the Jacksonville, FL area some of the short sales that are listed in the multiple listing service as being sold "as is" with no repairs being made. The lender will have what is called a broker price opinion (BPO) done indicating the current market value for the house. Based on this opinion the price is set where the lender then calculates their net based on all the associated costs to close. Experience indicates that there isn't much deviation from this price when an offer is made. There are some homes that are still owner occupied where you might be able to negotiate some, but the lender will have the final say on price. If you're in the Jacksonville area give me a call and we can discuss your options - 904-571-1358.
All the best
Charlie Chorman - REALTOR
Vanguard Realty, Inc.
Check the comparable current sales in the area. Go back three months, and that should tell you how to price your offer. Most of the short sales I have dealt with had the seller paying all or part of the buyer's closing costs. Most of the seller's paid for the home warranty too. Good luck, and be patient. Short sales are still taking a long time, eventhough the time has been shorter lately.