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I am supposed to get a good deal in short sales

good deal



"Everyone else is getting a good deal in short sales, why do I have to pay higher price?"  Does this sound familiar? Do you have buyers ask you about prices on short sales listings? Some buyers are expecting a $20,000 to $50,0000 savings, and perhaps more off the list price and receive a shock when their offers are countered by the short sale lenders. Unfortunately, most buyers don't understand how short sales are being priced and the dynamics involved.



The rationale for the expectations on discounts stem mainly from the fact that buyers know sellers are in distress and unable to make reparis, and short sale lender do not usually agree to repairs, so the buyers are basically buying the property in "as-is" condition and realize they would most likely have to make any repairs.  It does not help when the property is in disrepair, or when the deferred maintenance is overdue.


Priciing


There are two key elements involved. Listing agents need to price the property at fair market value with consideration to the condition of the property if the property is not preapproved for a Home Affordable Foreclosure Alternatives (HAFA) short sale, and no appraisal or Broker Price Opinion (BPO) is done prior to listing the property.  The list price should not be so low that offers will be rejected or countered aggressively by lenders.


At the other hand, buyers should ask their agents on how short sales are being priced, what it takes to have a short sale approved by the lenders, average waiting time to receive short sale approval, and their responsibilties when approval is received.  Setting the right expectations typically help to assure the buyer and help them decide if short sales are right for them.




 

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Info provided as a courtesy by Sherry Sim, Broker/Owner of Sims & Company, offering real estate services in Cayucos, Cambria, Los Osos, Morro Bay, San Luis Obispo & rest of beautiful Central Coast, San Luis Obispo County.

For real estate information, including list of foreclosures and short sales,

please call/text Sherry @ (805) 234-4315 or Email: Sherry@SherrySim.com.



  

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