It's a Foreclosure or Short Sale We Can start with Low offer Right?

The Smyrna, Mableton, Austell, and Powder Springs Suburb of metro Atlanta GA, has had its share of foreclosed properties latetly. However, I often been asked by would be buyer's that "Its a Foreclosure or Short Sale We can start with low offer right?

My resposnce are just becasue the property is a foreclosure or short sale does not means you should start your offer as low as possible becasue of the following reasons:

A. If its foreclosure, the bank are not in the market to give away the house

B. Before the banks put the house on the market, they have done their due deligence by having the house appraised by a third party entity to determined appraised value of the property. Taking into consideration of the repairs and most recent sold properties (COMPS) in the area in similar conditions.

C. Just becasue its a foreclosure (I will address short sale later), todays buyers are looking for a deal. therefore you are in competition with other buyer's,

D. When banks received more that one offer on a house. Which they do 90% of the time, they will ask all buyer's to submit their highest and best offer. Without disclosing the $amount of other offers.

E. If its a short sale, the bank have a final say of the offered price. Keep in mind that the seller is asking the bank to accept a lesser payoff of the balance owned.

F. The bank again have to do their due deligence, by having a third party appraied the house actual value. Therefore, if a buyer offered a low price, the bank has the right to refused the offer based upon their appraised value or counter back with higher price.

G. The bank can aslo ask the seller to sign a deficiency letter. Whereby the bank can go after the seller to pay back the difference of amount owed.

H. If you have to move in 30-45 days, short sale may not be for you regardless of how attractive the price. Becasue, short sale can take anywhere between 40-60 days to get approved or never get approved at all.

In conclusion, just because the property is a foreclosure or short sale does not warrant a low ball offer. Your agent should do his or her home work by advising you to offer a reasonable price based upon comparable sales in the 1 to 2 miles radius of the property.

Have a question about foreclosure? contact The Jay Team

Have a question about short sale or need to sell your home? contact The Jay team

www.jaybsellshomes,com