Replies to This Discussion

Permalink Reply by Sheila Vardakis on June 1, 2012 at 9:35am

Deanna,

It is unrealistic to think you can go in a low ball any home by that much.  The variables that your agent may be talking about are the number of days on the market, the amount of work that needs to be done, what type of loan the seller has on the home, if the home can go FHA, etc.  FHA is the primary loan right now because of its low down payment of 3.5%.  When a buyer gets a FHA loan, there are certain requirements that the lender will require of the home such as no peeling paint, a roof that has at least 5 years of life left to it, no wood rot around exterior, no foundation issues, no plumbing leaks, etc.  These are for the most part the biggest items. 

 

What you have to know going into a short sale is that when the seller accepts your offer and the contract is submitted to the bank for approval, the bank will order their own appraisal of the property.  Here is where the listing agent has to be real close to market value.  If they price it too low, the bank will come back with a higher counter and you will scratch your head wondering why.   With that said, the listing agent should have it as close to market value as possible.  The only time I have considered a low offer is when the house has sat on the market for too long, getting close to auction and the feedback from buyers has been nothing but negative.  I feel the seller at that point is blessed to get a contract so let's just submit and see. 

 

I will say though I want to get as close to what I feel the value of the home is so that I don't not only waste my time, but the sellers, buyers and banks.  If done right, everyone wins in a closed short sale.