Special offer

SHORT SALE NEGOTIATOR TO LISTING AGENT: THE PURCHASE OFFER IS TOO HIGH FOR APPROVAL! RESUBMIT A LOWER OFFER!

By
Real Estate Agent with Platinum Realty and Preservation

Today, I encountered something that I had never encountered nor ever heard of anyone else encountering either. I received a call from a short sale negotiator with regard to a package I submitted. List price: $75K. Offer: $79K. So, in my mind, I thought this was a slam-dunk (well as close to a slam dunk as a short sale can get, right?)

Well, I was COMPLETELY wrong!

The negotiator informed me that based on the interior BPO and their in-house appraisals, the purchase offer was too high and that the Buyer needed to submit a LOWER OFFER!

Typically, at this stage in the game, the negotiator often calls with the exact opposite news. Often times, the process turns into a huge debacle between the listing agent and the lender because many times the lenders have a higher value than the purchase contract. Not so this time around...

So, today was really a pleasant surprise. And, I am sure it will be an even bigger surprise to the Buyer who gets to pay about $15K less than what they originally offered to pay.

So, does this take some of the steam out of the argument that banks are just all about how much money they can get, and sometimes clueless when it comes to valuing properties? Is this a good sign of things to come? What do you think?

 

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Sandy Wagner
RE/MAX Professionals 253.225.8322 - Gig Harbor, WA
Short Sale Specialist Tacoma, WA, and Gig Harbor,

I want a lender to call me with that news.You're the first I've heard of this.

Feb 16, 2010 02:14 PM
Danielle Pierce
Platinum Realty and Preservation - Chicago, IL
ADPR

@ Sandy - It's a first for me too. It was from a MAJOR lender also!

Feb 16, 2010 02:18 PM
George Burgess
RE/MAX Heritage - Pittsburgh, PA

Danielle, maybe they were trying to avoid some requirement to justify a low listing price.  Or someone did not want to look bad. Sure is different.

Feb 16, 2010 02:48 PM
Lori Mode
The Mode Real Estate Group - Elk Grove, CA
Real Estate Made Simple

Danielle - that would be very welcome news!  Today I got the other call...your buyer needs to increase their offer by $10,000.  I had to ask if they would like me to send them photos of the repairs needed to bring this home up to a livable condition.  No buyer will pay $10,000 more unfortunately for this property.  More work to do, I guess.  Hopefully, your experience will become more the norm for us all.

Feb 16, 2010 03:41 PM
Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

The simple answer is that the loss mitigator did not believe the property would appraise out for the new buyer and they didn't want to lose more time re-negotiating. You can bet that if it was a cash offer they would have jumped on it.

Feb 16, 2010 11:00 PM