Short Sale SellersRoom to Negotiate with Short Sales?
Nowadays you can count on the fact that most of the listings on the MLS currently are either a foreclosure REO listing or real estate short sale. Many home buyers are now asking, can I get an even better deal with these short sale listings? How far is too low of an offer price? With more and more short sales popping up on the MLS, the short sale market is becoming even more competitive and many listing agents are listing short sales with low hope on the success of drawing in multiple and competitive offers.
Always as a rule, if the home is an a desirable area, you need to be prepared with offering close to the listing or even slightly higher to compete in the bidding.
The lender is the last to approve any sale and will usually avoid writing a counter offer and may wait for the best offer to come in. The lender will also not work with contingencies such as you needing to sell your home first as they want a very fast close once the lender decides they are ready to sell. A good down payment is always great on paper. Unfortunately just because you offer full price, the bank may not accept the full offer since the offer in their eyes may still be too low since the seller not the lender determined the listing price.
Some good advice:
- Put your best offer forward to avoid getting into a bidding war. It is rarely that you will get a 2nd chance.
- Don’t get attached to the home as the process can and will be long.
- The lender(s) are not obligated to the typical procedures in place during a real estate transaction. You’ve got to be patient!