Help! I’m Making an Offer on a Short Sale Listing!! #1

Help! I’m Making an Offer on a Short Sale Listing!!  #1


The price is low, low, low!

Why is the price so low?Help! I’m Making an Offer on a Short Sale Listing!!

First of all, the price is low because the seller is getting no money at closing, so it does not matter to the seller what the price is. If the price is at market value, or if the price is below market value it makes no difference to the seller. They are getting no money at closing.

Second the price is low because there is a stigma against short sale listings. Roughly 4 out of 5 never close at all, so a lot of buyers avoid short sales completely. Less buyers means less price.

Third the price is low because the listing agent has to bait a buyer and a selling agent to see the house, show the house and make an offer. That is accomplished by setting an unusually low price on the home.
Help! I’m Making an Offer on a Short Sale Listing!!
Fourth the price is so low because the seller will likely do no repairs on the home. The buyer will have to accept the home in its “as is” condition, and any repairs needed will be paid for entirely by the buyer. This increased risk, and increased possible cost, makes the buyer less willing to pay full market price.

Fifth, the price is so low because there will most likely be no closing costs paid for by the seller. Most first time buyers need this help to complete their purchase. With another large section of buyers unavailable to purchase the home, the property will get less than market price.
Help! I’m Making an Offer on a Short Sale Listing!!
Sixth, the price is so low because some listing agents hire a short sale negotiator for one per cent to one and a half percent of selling price, and they ask the buyer to pay that fee on top of the negotiated sales price. That ends up being a hidden cost that is not reflected in the price being advertised or offered to the public. A nasty surprise to most buyers, to be sure!

 

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The Phil Leng Team

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pleng@kw.com

http://www.ilovekirkland.org

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1 Comments on Help! I’m Making an Offer on a Short Sale Listing!! #1

MAR
05
2012
356,955 Points 27 Featured Posts Attended Rain Camp Called Shot Master

Phil... These are great reminders for buyers. Often they have very unrealistic expectations.
10:49am • #1


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Phil Leng Team Residential Real Estate Experts & Bank Owned Property Experts

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Kirkland, WA

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Keller Williams Eastside Market Center

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