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Low Ball Offers and Short Sales Don't Mix. .

Reblogger Ginger Harper
Real Estate Agent with Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team 93383

Many folks think that because it is a short sale, that they can make a low ball and it would be accepted.  Little do they know that the bank is going to accept anything but what market price is.

Original content by Fernando Herboso - Associate Broker MD, & VA Broker - Realtor - CEO

Question: Can I just send a low ball offer on any short sale. . what difference does it make? 

short sales maryland

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.

Many times I had  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

 

 

 

 

 

 

MORE QUESTIONS AND ANSWERS

 

 

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Q: Wachovia Short Sales Program Steps You Need to Take For A Short Sale Approval

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Jeanne Kozak
RE/MAX In Action - Martinsburg, WV
REALTOR and Broker/Owner in WV and VA

I agree with you, low ball offers on short sales put the sellers at risk of possibly losing their home to foreclosure. In the early days, the theory was just get something on the table to get the ball rolling, that is not the case any longer. If my seller is late on payments I advise them not to tie their home up with a low ball offer as it will discourage another buyer that might make a market value offer from making an offer. Buyers agents should know better

Jan 15, 2013 09:22 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

In short sales that I've done, I've always included an offer that was the same as the BPOs. The seller has to do everything possible to make the lender agree to the offer, otherwise, yes, he's in jeopardy of losing his home to foreclosure.

Jan 15, 2013 01:04 PM