You don't know how many times I've been asked this question "Can I get a better deal on a Short Sale rather than a Foreclosure?" A better price? I'm not so sure about that. I sometimes think buyers think the word "short" means something else; perhaps "little" as in I can pay very little for this property or "low" as in let's low ball the bank......I can go on and on. For some reason, some buyers, not all of them, seem to think the banks are desperate and will take any offer just to get the property off of their books.
I don't blame buyers for wanting to get a good deal. Who doesn't want a good deal? But the truth is, lenders will evaluate the offer based on comparable market activity and not just accept anything. They hire a professional to determine the value. Typically an appraisal or a broker price opinion (bpo) are done and sent to the bank. If the BPO or appraisal match come close to the offer, then approval is likely as long as the seller meets the banks criteria for having a "hardship". If the offer is considerably lower than the banks findings, the lender will ask for more money.
This is where the agent needs to educate the buying public. Let's not keep a house under contract for a ridiculously low price; that's just irresponsible. No seller should risk several months waiting for the bank to issue a denial letter or worse yet, get an approval and the buyer is no where to be found! Yikes! C'mon now! There are people involved in these transactions with high hopes of moving on with their lives so let's not play games. Find out what the real market value is from your agent and put in a fair offer. In the end, you will be getting a great deal!
Contributed by Jeanine Corcoran
Coldwell Banker Ackley Realty
www.FLshortsalePros.com
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