Some short sales are priced very low. Lower than comparable value, even lower than comparable value based on the Low Point of the real estate market.
For those short sale agents, I’d say, “your short sale may as well be on the Price is Right!”
You know, at the beginning of the Price is Right, if everyone else is bidding too high on the initial offer, the winner is the one that bids a single dollar. $1.00…..
Some short sales are approached that way in their Realtor’s pricing strategy.
That does not help the short sale seller nor the short sale buyer.
What you need to know is that the bank, the lien holder, is the one that approves the short sale, the price, the terms and all items.
There is an exclusion within the confidential remarks on a short sale that states, or should state, “Price, commission and all terms subject to lender approval.”
This means that the lien holder, the one with the most skin in the game, needs to approve the price that was listed and in which the offer was written on.
If there is a second lien holder, such as an 80/20 loan – then the second lien holder needs to approve it as well.
If there is a 3rd lien holder, then too have to approve the short sale. All lien holders must approve the short sale price, terms and other items!!!
While it is not as ‘clean’ as you may think, there maybe multiple people that have to approve the offered amount from the buyer.
If a realtor has a buyer that is qualified at a particular amount, and taps out that client at their max on a short sale, they may be doing so in vain.
It could be the bank comes back at a higher price, one established by an appraisers value, which the home buyer can not be approved for, due to them being “maxed out”.
That is why it’s important to have your Realtor, the one you hired to be on your side 100%, one that has no interest in the seller’s home, construct a “reasonable offer” based on comparable and fair market value.
There are a lot of games being played in real estate and I hate them all. Especially those concerning short sales.
Make sure your Realtor checks the value before you embark on a journey concerning a short sale home, condo or townhome.
I’m Connor MacIvor with REMAX and I’m Glad to be of service!!!