That's Too Much for a Short Sale!!
Yes. Words that an experienced Northern Virginia Short Sale Agent will never speak. Why? Because we know that Short Sales, despite the fact that the banks need to approve a short payoff of the mortgage(s) are really no different when it comes to evaluating their price. There is no discounted value an appraiser gives to a Short Sale simply because it is a Short Sale. Appraisers are trained to look at homes and compare their size, condition and location to the comparables in the area. If the comparables are regular sales in largely the same condition, similar size and in the same neighborhood...well...that's what is going to be reflected in the bank's counter to the buyer.
I had a bank counter a Short Sale today. They countered with a 12% higher sales price than the Buyer of this particular Short Sale offered. The Buyer stated, "That's too much for a Short Sale! What? Are they comparing it to regular sales?"
Yes. In fact they are. And no wonder. The home is in great shape, unlike the previous Short Sales in the neighborhood. Unfortunately, in the time it took the Buyer to get an updated lender letter to us so we could get the Short Sale to the bank, some very good sales hit the market. That renders the offer that we thought was a slightly low, but workable offer, much lower and no longer feasible with the comparison the bank did to those sales.
When you are looking to purchase a Northern Virginia Short Sale, please realize that the unrealistically low list prices that you may see on some homes are really there to get a contract to stop an impending foreclosure sale. The bank will not accept much less than market value in our area for a Short Sale. What does that mean to a Northern Virginia buyer? Simple. If the home you just viewed is a Short Sale priced at $319,000, but all the homes selling like it and around it are selling for $399,000....the bank is going to want something closer to $399,000.
If you are considering buying or selling a Short Sale, give me a call. I've been a Northern Virginia Short Sale Agent since 2007 and can help you navigate the market with something most Short Sale buyers and sellers don't have....a realistic view point from a true Short Sale professional.
Chris Ann Cleland, Associate Broker-Licensed in Virginia, Long & Foster REALTORS®