Back to the topic of short sales and attempting to understand them. So far we’ve talked about how there is no logic to the process. Then we talked about the timing of a short sale and how the banks don’t really care about your timeframe. Basically you enter into the short sale black hole.
I’m willing to give them the “listing price”
I mentioned this statement last week and thought I’d elaborate. You see, the listing prices on short sales doesn’t really mean a whole lot. There is actually a whole strategy to the pricing but as a consumer when you see that amazing price on that big ol’ house you need to remember, the bank has not approved that price (generally).
What is owed to the bank and what the listing price is do not match. Until an actual purchase and sale agreement is written the bank will not negotiate on how much they would sell the home in question for. This matters when you are looking at potentially trying to buy a home that is a short sale. Always remember, that “too good to be true” price could be just that. Too good to be true. Sure, the bank may accept your offer, just keep in mind that there is no guarantee they will. Even if you offer “full price”.
Keep coming back as I continue talking about some of the basic components to understanding the short sale process. If you have any specific questions or comments, feel free to leave them below.
(Thanks for the spare change from Guanatos Gwyn, used with Creative Commons license)