Bellevue WA – I see a lot of agents making mistakes on short sale property valuation. Lenders hire a supposedly impartial third party to value the property.
Many of these people are evaluating 10 properties a day. There is very little quality control and usually no one checks their work.
Because of that, I always try to meet them at the home when they are doing their inspection. I explain the history of the property and why it is selling for that price.
The lender will take as gospel whatever value that person tells the bank the property is worth. If that value is more than the property is selling for, then the lender won’t accept the short sale.
Here are some common mistakes that you need to make sure that your short sale agent avoids.
One common mistake is to use comps outside the neighborhood when the bank is ordering an appraisal instead of an agent. Agents understand that buyers don’t buy only in a specific neighborhood.
Buyers look for the best deal they can find within a specific area. Because of this, an agent is more willing to use comps outside of the neighborhood.
But, when the bank is using an appraiser you must use the closest geographical comps, not the lowest priced comps.
The second mistake is not controlling the access to the property. Click HERE to continue reading.