I find it interesting that negotiators almost always counter at the BPO price. It's what their boss at the short sale department instruct them to do. I think the investors also like the files handled that way.
However, it does not mean that is their final offer. It just means that is their initial counter. Usually, if the negotiator does not tell you the BPO amount, you can guess that the BPO came back where they are countering.
Here are a few guidelines for what different investors are actually willing to accept on a short sale.
Fannie & Freddie will go as low as a net of 75% of the BPO. This sometimes happens in Florida and other states where the market has dropped a bunch. If the home is not in those areas, they will accept somewhere around 85%.
VA has a standard net that is 88.13% of the VA appraisal. I don't know if that number varies around the country. I don't think VA will make exceptions. However, you can contest a VA appraisal.
FHA will accept a net of 88% of the FHA appraisal for the first 30 days, 86% for the next 30 days, and 84% for the time after that. They will make exceptions. I'm sure it's good to back up your case.
On other loans, they will accept a net as low as 75% of the BPO. But, that depends upon the temperament of the negotiator. It also depends upon how good you are at selling them on why they should accept the offer. In addition, it depends on whether or not you know how to escalate the file. I give you good examples of how to "sell" the escalation in my escalation system.
If the negotiator tells you that the buyer must pay their counter, and the buyer isn't willing to raise their offer, then look at my notes below. See what the minimum net percentage of the BPO/Appraisal calculates out to. Is your offer netting them more than that number? Tell them you know the rules and that they need to follow them. The strongest guidelines are for FHA and VA files.
If you're running into problems with short sale files, then you probably need to look into the How to Escalate a File Course. Get more info at http://www.HowToEscalateAFile.com .
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You can get a copy of all the fax numbers for congress and a fax template to send to them here: http://shortsaleagentadvocate.com .
Got questions about short sales? Just ask.
Ben Curry & Chris Curry - Keller Williams Real Estate, Gainesville Florida.
We specialize in short sales in Gainesville Florida. Gainesville Florida short sale, Gainesville fl short sale, Gainesville Florida short sales, Gainesville short sale