A Low Ball Offer Does No Good. . .in a Short Sale
An excellent perspective on how useless a lowball offer is on a Short Sale.
Question: Can I just send a low ball offer on a short sale. . what difference does it makes?
Any experienced short sale agent knows that the bank is only willing to sell the property at fair market value.
Fair market value is determined by recent comparable sales in the area of the subject property.
Before the bank accepts any offer on a short sale listing they will order a BPO.
What is a BPO?
A BPO is simply like a mini-appraisal and it is the validation the the banks are seeking for before accepting a short sale.
Sending a low ball offer to the bank will only prolong the time to do a short sale and cut the chances for me to do my job as a listing agent.
When listing agents for short sales send a "Short Sale Package" among the homeowner's papers for hardship and income. . . we have to also send a validation for the offer amount.
We send comparables and pictures and if the property is in need of repairs, a brief explanation as to why the lender should accept the enclosed offer to purchase.
A low ball offer is not to the best interests for my clients in many ways. .
That's why. . .
If we receive a low ball offer, I will advise my clients properly whether they should accept it or not, otherwise I would not be doing my job.
I recently had a buyers agent demanding that we sent their offer to the bank anyways. . they want to bank to turn it down. . .
Then I remind them. . that the lenders are NOT SELLING THE PROPERTY. . my CLIENT IS.
To find out if a short sale is the right move for you click here
Comments(48)