Short sales offer a pretty fair discount on single family homes in the area and right now there are many homes in Plainfield IL available to chose from, but the banks aren’t going to give them away for pennies on the dollar.
Here are a few things you can expect when writing an offer on homes that require 3rd party lender approval:
- Short sales take time. If you are not willing or able to wait the 6-10 weeks required for lender approval, a short sale is probably not the right choice for you.
- The lower the price, the less likely your offer is to be accepted. The further your offer is from the list price on the MLS, the less interested the bank will be in your offer.
- Be prepared to submit a counter offer. Lenders always counter the original offer, so be prepared to increase the ante, even by a little or the lender will close the file and wait for another offer.
- Cash offers don’t always entice lenders. If the offer is too low, it doesn’t matter how it is financed or paid for.
- The homeowner is still in control of all decisions regarding the property, with the exception of requiring lender approval to sell the home for less than what is owed. The submission of all offers to the bank is at the discretion of the homeowner, not the Realtor® or bank.
- A general rule of thumb for acceptance on a short sale is about 70-80% of the fair market value. The lender will order a Brokers Price Opinion or BPO on the property to determine fair market value. While the bank will usually not disclose the determination of that report, I can provide a market analysis of the area and provide a reasonable value for the property.