How do you make an offer on a short sale?

How do you make an offer on a short sale?

How To Make An Offer On A Short Sale

  1. Provide A Strong Earnest Money Deposit. Simply put, an earnest money deposit reveals how serious a buyer is about a property.
  2. Do Your Homework.
  3. Make Sure The Short Sale Is Lender Approved.
  4. Give The Bank Ample Time For Approval.
  5. Summary.

Can you get a discount for a short sale?

The bank may or may not allow a discount for waiting for short sale approval. Bear in mind, though, neither your offer price nor the BPO agent’s price could have any basis in market value. The amount you pay and market value can be two distinct things. Just prepare yourself for a counter offer from the bank if your offer price is too low.

How does a short sale work in real estate?

A short sale is when homeowners sell a home for less than what they owe on a mortgage. 1  This means sellers are highly motivated since they want out of the home, but your offer must be approved by both the seller and the seller’s lender.

How much can you offer under list price for short sales?

The short sale bank will hire a Broker Price Opinion agent and pay that agent less than $100 to produce a BPO. Bear in mind, though, neither your offer price nor the BPO agent’s price could have any basis in market value. You cannot hang your hat on the list price of a short sale .

What should I bid on a short sale?

Generally, banks approve a short sale that’s roughly between 5 percent and 10 percent under market. Get the listing agent to level with you about the interest in the property. If it has already received a number of offers, your bid may need to be priced much higher than the list price.

A short sale is when homeowners sell a home for less than what they owe on a mortgage. 1  This means sellers are highly motivated since they want out of the home, but your offer must be approved by both the seller and the seller’s lender.

The bank may or may not allow a discount for waiting for short sale approval. Bear in mind, though, neither your offer price nor the BPO agent’s price could have any basis in market value. The amount you pay and market value can be two distinct things. Just prepare yourself for a counter offer from the bank if your offer price is too low.

Do you have to bid higher than the list price on a short sale?

Get the listing agent to level with you about the interest in the property. If it has already received a number of offers, your bid may need to be priced much higher than the list price. If the seller has already accepted an offer and sent that offer to the bank, you may be wasting your time trying to buy that home.

How long does it take to list a house for short sale?

List your property: Once the lender has approved the short sale, you can list your property with a real estate agent. You’ll need to present any offers to the lender for approval. This process can take two weeks to several months. If you have a second mortgage, both lenders must approve each other’s terms,…