Friday, July 13, 2012

West Sacramento Short Sale – What is the best offer to Accept

Today let’s talk about what the best offer on a West Sacramento Short Sale looks like.
 

Right now inventory is very tight. There are many more buyer’s then seller’s causing multiple offers on most West Sacramento Short Sales. So with multiple offers, what is the best offer to accept you ask?

The answer is easy – the best West Sacramento Short Sale offer to accept is the offer that has the best chance of getting approved by the investor and as important has the best chance of closing escrow.

One of the tactics buyer agents use in a multiple offer situation is to make an offer way above the asking price to the point where there is really no chance the property will appraise for that value. They do this knowing the appraisal contingency is part of the contract and when the property doesn’t appraise for offered price they will ask for a price reduction.

In an equity sale or an offer on a bank owned property (REO) it’s not a bad strategy. In a West Sacramento Short Sale it can be a deal killer and here’s why. The investor is looking to mitigate their loss – as they should. We will work weeks and even months on getting the West Sacramento Short sale approved. Once the West Sacramento Short Sale is approved the investor will issue an approval letter with the specific NET they require. This net is based off the sales price minus any other fees and charges such as closing costs and commissions. When the buyers appraisal comes in short and they ask for a price reduction we are then tasked with going back to the investor to request the change. They don’t always say yes.

If the request is declined and escalations don’t work we are then faced with cancelling the deal and starting all over with a new buyer. The danger here is if we are close to a foreclosure auction date there may not be enough time to save the property from foreclosure.

By the same token we seldom if ever accept the lowest offer. The investor generally knows what the value of the property is. If the West Sacramento Short Sale offer is too low they will either decline the offer or counter to price closer to Fair Market Value. If the lowball buyer doesn’t agree to the new price we are then right back in the same boat having to start over.

What are we looking for in a West Sacramento Short Sale offer? We are looking for the offer closest to FMV and that has the best chance of getting approved and of closing escrow. Pure and simple.

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did

No comments:

Post a Comment