UNREALISTIC EXPECTATIONS

Understand that the bank is already taking a large haircut and will probably not give the house away. The banks now have more capital from the federal government and can afford to hold properties longer.

EXPECT A COUNTER OFFER

Most buyers seem to be affixed to a specific price in their mind. They tend to make a low offer in hopes of a home run and when the bank says no they withdraw. Be a savvy investor by understanding the bank matches up the sales price with the value provided to them through the BPO or Appraisal. Expect a counter and be ready to negotiate.

ALREADY DISCOUNTED

A short sale is usually discounted to produce a quicker sale than comparable properties. If the offer is not close then the bank will not except the deal and most likely will counter the offer or deny it all together.

SOMETHING FOR NOTHING

Most savvy investors understand that there is usually a price to pay for everything. Most short sales take about 90 days. A lot of buyers get frustrated and move on to other properties rather than hanging in there. In order to get a good deal there is a great amount of patience required.

MULTIPLE OFFERS

Normally REO’s are less flexible on price as there are fees that the bank is trying to recover. The bank will usually look at multiple offers and the highest one will most likely win. In a short sale, there is usually one offer at a time submitted to the lender for approval and multiple offers are in back up position. Back up offers are submitted if they are of greater value or the first offer was denied.

AS IS

Short sales and REO’s are usually sold “as is where is”. By requesting a home inspection you have performed due diligence and may be able to avoid future problems however, the bank will typically not negotiate over repairs.
 

HOT SHEET

Call us for an updated list of our In-House Hot Sheet!