Can Northern Virginia Short Sale Buyers Renegotiate Sales Price AFTER Short Sale Approval?
Short sales in Northern Virginia have become a way of life. And yet, there are still buyers out there that think they can literally hold the bank up for a better deal. Sometimes buyers try to do that after short sale approval. As Chris Ann Cleland tells you, that's not going to fly.
Can Northern Virginia buyers renegotiate sales price after short sale approval? As a Northern Virginia short sale listing agent the answer seems obvious. NO. Of course not. So why are there buyers out there that write an offer, wait for approval, get approval, then turn around to renegotiate the sales price?
THESE NORTHERN VIRGINIA SHORT SALE BUYERS ARE BEING REPRESENTED BY AGENTS WHO DO NOT UNDERSTAND SHORT SALES!
There is no such thing as ONLY renegotiating the sales price. Let's say you made an offer on a Gainesville townhouse. It was listed at $160,000. You offered $158,000. While waiting three months for approval of your sales contract by the seller's lien holder(s), you notice other townhouses coming on the market for
$150,000. When the approval comes in at $158,000 you think, "Well, now I don't want to pay any more than $150,000."
The only way you are not going to pay the approved sales price is if your appraisal comes in below that sales price. The lien holder(s) have already done a BPO, or their own appraisal, to determine the market value of the property. They approved the sales price because it was in acceptable parameters of market value.
If you go through the loan underwriting process and your appraisal shows a lower value than you were willing to pay, the sellers lien holder(s) understand they must lower the sales price so your loan can be funded, or go fishing for another buyer. The former is a much smarter business decision.
You can't simply go back to the bank and say, "But the neighbors house is listed for less." Sorry Charlie. Game over. You are starting the approval process all over. If you are dealing wit a short sale listing agent with half a brain, they will hand you a contract release form, change their MLS remarks to indicate the short sale has been approved, give the sales price approved, and catch a buyer willing to pay that approved sales price.
When you are purchasing a Northern Virginia short sale, make an offer that you are willing to stand behind. If you aren't willing to pay what you offered, why are you offering it in the first place? You are wasting everyone's time, including your own. If it is the amount of time you waited that has you questioning the homes current value, let your appraisal sort it out.
Chris Ann Cleland, Realtor- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header photo is Lake Manassas in Gainesville, VA taken by Chris Ann Cleland.
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