The old saying, “If it seems too good to be true…it probably is” can apply to the asking price of some of these short sales on the market. Pricing a short sale that makes sense is imperative and increases the chances of actually getting the property sold. Most buyers might assume making a full price offer on a short sale guarantees you gold at the end of the rainbow, so to speak. Short sales are a completely different animal than the traditional buyer and seller transaction. As a buyer, the first hurdle is rather simple, get the seller to acknowledge and agree to the terms of your proposal. That will not be difficult since the sellers goal is to get an offer to the bank as quickly as possible.
You’ll probably need a Pole vault pole for the second hurdle, negotiating with the bank. The bank and sellers goals are counterintuitive, the owners are attempting to disencumber themselves of their home that’s underwater and the bank wants to minimize their losses as much as possible. Just as a buyer needs an appraisal to justify the price for their loan, the short sale bank will also require justification of value through their own appraisal. They will not blindly accept that offer that has been agreed to by the seller.
The agreement between seller and buyer are nothing more than a gesture. Everything from the price to the terms will be scrutinized by the bank. They will then make their own alterations to the agreement. They will normally not accept an offer that is not in line with their assessment of value. Buyers that have assumed they’re getting this great value could be shocked after the bank has rendered their decision. The home they thought they were buying for $25,000 under market value was nothing more than a facade.
That’s the reason short sales seem so appealing, those prices can’t be beat. Home buyers should remember the aim of the seller and bank are polar opposite of each other. If the intent is to purchase a short sale, you can avoid this possible dilemma by having your real estate representative provide an accurate analysis of the value and make an offer based on reality. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.