Buyers Shouldn’t Be Afraid of Short Sales – Roseville Short Sale Tips
Listen up buyers in Roseville CA (or anywhere else for that matter). You are protected from over-paying for a short sale! “How,” you ask? Your appraisal! The appraisal completed on the home you are trying to by is an excellent negotiation tool.
Here is an example of how my Roseville short sale buyer closed escrow on a great home for an even better price:
I just closed on a Roseville short sale last week. The property was beautiful. It showed extremely well and got several offers within a few days. My buyers loved the house and offered the full listing price, $270,000. Score! A couple months later, we received a short sale approval with the sales price of $270,000. So far, so good. Except for one thing, I had a sneaking suspicion that the home prices in the neighborhood were softening a little!
It’s not uncommon for a value of a home to go down a little while time is spent getting a short sale approval from the bank. The buyers got an appraisal for their loan. Sure enough, the appraisal came in low. Appraisers are extremely cautious these days due to the economy and past lender fraud. Although, every appraiser is subjective, most are playing it very safe. They are looking mainly at square footage and the number of bedrooms and bathrooms to determine a home’s value. They aren’t putting as much emphasis on interior condition and upgrades.
In the case of this Roseville short sale, the value came in at just $245,000! What to do? The buyers still wanted the house but they didn’t want to pay more than the appraised value. Who would? Time for me to do my job and negotiate for my clients!
An appraisal is an excellent negotiation tool and it holds a lot of water with the bank. Banks understand that an appraisal is the market value of a home and it will be very unlikely they will get more than market value for their asset. Most banks will approve the appraised price of the short sale in order to save time and probably more money down the road. In this case I was able to reduce the contract price $25,000 with the help of the appraisal!
I have been able to successfully negotiate the sales price of a short sale several times due to low appraisals. Appraisals are truly helping buyers from overpaying for a short sale! It’s important to note that your short sale agent should NEVER remove the appraisal contingency on your offer. If the appraisal contingency is removed, you will have no negotiating power to reduce the price. Buyers should always work with an experienced short sale specialist when attempting to buy a short sale.
Buyers Shouldn’t Be Afraid of Short Sales – Roseville Short Sale Tips
Posted by Roseville Short Sale Specialist – Allan Sanchez – www.AllansHomes.com
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