Every real estate agent with experience in short sales is aware of the term Short Sale Counter offer. Some people may enjoy negotiating short sale offers and especially the offers made by short sale banks. As an experienced Temecula short sale agent, I have noticed that most of the times these offers do not make much sense to the parties involved in the transaction. But one should understand that the offer always makes sense to the party issuing it and it is sent with some specific purpose. Being experienced in dealing in short sale in Temecula, I would like to explain some tips to handle and negotiate these counter offers effectively.
How the Bank will issue Counter Short Sale Offer?
In most of the cases, bank would prefer an estimate of the overall settlement and accordingly they decide whether to approve all the fees or counter the fees asked in the offer. I have witnessed some sellers who received counter offers from short sale bank and it is not necessary that all of these offers talk about the price. Bank can issue counter short sale offer via different modes and two of these are discussed below.
Written Counter Short Sale Offer: Bank can send counter short sale offer in written format via direct mail to the listing agent or they can even send email regarding the short sale offer.
Verbal Counter Short Sale Offer: Verbal counter offer are rare as most of the buyers do not consider them seriously and they prefer a proof of the counter offer. But despite of the fact, some banks simply inform the agent about the change in terms and conditions of the contract.
How to fight against Counter Short Sale Offer from Bank?
Generally these counter short sale offers are not justified and demands questionable terms. Most of the banks send counter short sale offer when they are not ready to approve the short sale and would like to close the deal from other side. In some cases, it may be a result of wrong assessment of property by the BPO agent. Let it be any reason but these counter short sale offers are not a good sign for the deal. However, you can always fight against these offers and in my experience of working as short sale agent in Temecula, I have seen people taking fight against these offers.
The first thing to look out for is that the offer is valid as per the laws of the state. Every state has different set of laws and banks have branches in multiple states. There are chances of different regulations for important information like natural hazard disclosure which is mandatory in California but not in New York. Some banks may even point out city transfer tax to be removed from the overall cost which is not fair. Although it is a small amount but it is the duty of every short sale agent to avoid any such fee paid by the buyer that should be approved.
There can be other issues like the negotiator do not understand HUD (Believe me it happens!) or the bank may file a counter offer because of the repair prices that seem to be too high for the bank. In such case, it is best to withdraw the short sale and the bank will close the file. Simply get the file reopened later and try to get a new negotiator for your deal. There are so many methods to counter these offers and it is always advised to get legal help and experienced Temecula short sale agent by your side.
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