How To Price A Short Sale

Pricing a short sale in order to get a response from the lender is key to bringing the seller, lender and buyer to a successful closing.

Facilitating a short sale requires that the facilitator understand the various guidelines that lenders use. Each lender may have there own unique requirements but there are some guidelines that are consistent from lender to lender. Without being able to obtain a counter offer from the lender a short sale attempt will never go any further than the initial offer.
That being the case the initial offer needs to be good enough to generate a counter offer.
Lenders rely on appraisals or BPO's (Brokers Price Opinion) in order to determine the value of a property and an offer. If the offer is considerably less than the BPO the lender may not respond at all and has no obligation to.

So, the initial offering price is critical to facilitating a successful short sale. How you get to a price that will generate an offer from a buyer and generate a counter offer from the lender is a challenge. Lenders take time to obtain information before making a decision. The lender is dealing with accepting a loss. The more of a loss the lender endures the longer that process will take. So be prepared for a long wait. If the offer is within range of the BPO or appraisal the lender is much more likely to respond with a counter offer that they can live with.

It is absolutely essential that the facilitator of the short sale be present at the appraisal or BPO. This is where the value that the lender is going to rely on is determined. The appraiser should be made aware of the circumstance if they aren't already. Any deteriorating physical neglect or anticipated expense required to resell the property should be brought to the appraisers attention. Lenders will look at these things as marketing expenses and may be more inclined to move the property before foreclosing in order to avoid repair costs.

Having someone knowledgeable in the short sale process facilitate the short sale is the most important part of the process. If you need help or more information on todays short sale process please contact me directly at 561-306-6736 or just send me an email with your question.

George Sinacori rebuygeorge@yahoo.com