The question that was posed to me on Realtor.com was this:
“My realtor informed me the contract someone else had on a house I was interested in fell through. I have no idea why. The seller agent said the bank approved $385K on a short sale and I could bid that amount. Can I bid lower that that? or Should I bid lower than that? I want the house, but at the best price.”
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You needn’t worry in this current market. Find out how recent that “value” was established – if within three month, I would offer that amount. Don’t forget, your appraiser, who works for the bank that is going to lend you the money, does not want to sell his employer (the bank that is lending you the money) short.
In fact, there are so many checks and balances with each appraisal that is completed, they might lose their job if they had been tracked to have consistently “high” values.
Don’t concern yourself with offering too much. Hit the property with the value the “short sale bank” has approved. They stand back while your appraiser does their job. You might be surprised that the value might be less than asking. It happens a lot in our market.
Choices are left in the hands of the “short sale bank” if the value comes in under theirs!
The short sale bank can usually adjust to the “new” value that was established or put the property on the market to wait for another offer. The putting the property on the market again, can create a bit of a problem if the first buyer was FHA – that appraisal is now part of the property and the value will be made aware to all of the future FHA buyers, if the Short Sale Seller’s Bank continues to play hard ball.
And there you go. Be Safe and let us know if we can help you write an offer on a Short Sale Property.