Buyers often get frustrated with the short sale process. “I made an offer on a short sale property six months ago. how come I haven’t received an answer yet?”, they asked us. It is fairly simple to determine if a short sale offer will be approved.
You just need to know what the lender’s guidelines are for approval. Most lenders will first order an appraisal to determine the value of the home. They don’t want to sell the home for less than the appraised value. The appraiser will look at recently sold properties and how they compare to the subject property.
They will use that info to determiner the Fair Market Value. They turn in their report to the lender. The lender uses the reported value to accept or deny an offer. If the offer is substantially lower than the appraisal, then they will reject the offer. However, they will usually accept offers within 5% of the appraised value. Obviously this varies according to the lender and the circumstances.
So, you want to know if your offer will be accepted by the short sale lender? Ask your agent to put together a CMA, also called a Comparable Market Analysis. This is your agent’s opinion of the value of the property. If your offer is within 5% of the agent’s opinion of value, then you have a good chance at the lender accepting it.
If your offer is below that 5% mark, then there is still a chance the lender will accept it. However, the odds decrease substantially. If you want a second opinion on the value, then order an appraisal. You can send your appraisal to the short sale lender.
I will be hard for the short sale lender to argue with an appraiser’s opinion of value for a property. An appraisal that backs up your offer price will go a long way towards getting your offer accepted. Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.
Thanks for reading this. If you or anyone you know is in need of real estate advice, please do not hesitate to contact me.
Donna Bishop Realtor call me (239) 560-3149 or email me; firstname.lastname@example.org