Short Sales are a mystery in and of themselves, so I’ll break them down in segments to try to make some sense of the damn things. So, let me start by taking the mystery out of the short sale pricing...hmm, 1st let me complicate things and say there are probably a few different aspects of pricing that one could get confused about. So to start, here’s a scenario; as a buyer you see a list price on a home. You assume that if it’s listed at $100k and you offer $100k, then it’s a deal, right? Wrong! Short Sales are short sales, which means no price is final until the deal closes. Why, one might ask? Well, because the definition a short sale, means that the seller is selling short of what they owe, therefore, the lender must agree to the final price. The conundrum lies in the fact that the lender typically will not approve a price without an offer. Therefore, the listing agent must price the property without knowing what the lender will accept. Yes, we as agent use comparable sales in order to price the subject property, but still there’s no guarantee that the seller’s lender will accept until negotiations begin...and well, end.
So, what does all that mean? Agents that list Short Sales must price the property according you what they think a buyer may pay. From there a buyer makes an offer & negotiations begin with the seller’s lender. The seller’s lender then must accept or counter the offer. Once negotiations are finalized, the process moves to closing. Yay! Short Sale are the best deals on the market in my opinion, but they are not for everyone. They take patience, but good things come to those who wait.
TaraPropertiesNW@gmail.com | 360-296-3244 | Keller Williams Western Realty
Comments(6)