“Is that Short Sale Price Legit?”

I’ve been keeping my eye on a specific Short Sale for $99K on Lake Land’or.

(If you need a review on Short Sales, click here.)

Every day I receive an updated list of homes that are for sale in Caroline County – new homes and price changes. Some days I’m shocked by the price of a home. Sometimes the price is so high that I wonder what the agent and sellers are thinking. Other times, the price is so low that I can’t imagine the bank accepting the price. When it comes to “Short Sales” often the price is all over the board. Here’s why…

When an agent looks at a home, there are several steps that need to be taken in into consideration. Have the sellers been in constant contact with their bank? How many months behind are they on their payments? Has the agent received permission to speak to the bank? Has the bank appraised the home and shared a price that they are willing to take for the property? … At each of these points, the price may change.

When you see a foreclosure for $90K, then you know that the bank will actually accept that price. But if you see it as a short sale, it could be an abstract price. The short sale price may also be very low, because the seller can bring some funds to help off set the deficit (but not all), so it’s still a short sale.

So if you see a “short sale” price, have your agent check with the other agent to see where they are in the process of working with the bank. Then decide how long you are willing to wait on answers from the bank. Decide how much more you are willing to offer if the bank does not like the offer. You do not KNOW that the original lender will accept the advertised asking price.  There may be competitive offers. Which may drive up the price a bit.

Finally, don’t be scared! The fact that the owner owes more on the home does not affect the buyer. Ask yourself if you want to call this place “home” and how much you are willing to do to make it a possibility.

Tagged as: caroline county, lake land'or, pricing, short sale