How are Orlando Short Sales Priced?
How are Orlando Short Sales Priced? Who prices the short sales? Those in the business say short sales are priced with a blindfold and a dartboard….and the listing agents desire for an overdue offer on the short sale.
A short sale is a property that is being sold for less than the mortgage amount, so the bank has to approve the short sale. First of all… lets be honest…everyone hates short sales…even buyer and sellers involved in the short sale are frustrated.
The Short Sale Buyer never understands why their offer is taking so long. Many think that “CASH” is a magic word that will make the short sale loss mitigators at the bank sit up and hustle to approve the short sale file…no such luck.
The Short Sale Seller may be shocked to learn that the bank wants them to bare all private finances and personal problems in a “short sale package” or that the bank may want a “deficiency judgement” or even a sellers financial contribution at closing. There may be no free pass on this short sale.
Home Buyers typically like to close in a month and move in…short sales take months. So the listing agent (who has no idea what the bank wants) prices the short sale property at the low range in order to stimulate interest. If there are no quick offers, the list price on the short sale gets lowered…and lowered… and lowered untill someone sees it as a short sale bargain and puts in an offer. The listing price may end up being lower that what the bank is willing to accept for the short sale.
Once an offer is submitted, the seller signs it and then the contract is sent to the bank for their short sale approval. The bank then pays a different agent about $50 to do a BPO (Broker Price Opinion/Mini Appraisal) to tell the bank what the property is worth. To do a BPO you need no experience, no training and no test, so the BPO may be off the mark for market value and even valued at more than the full listed price. There is no short sale formula to figure out. The only thing for sure is that the more that is owed on the Orlando short sale property, the more the bank will want and if there are two mortgages with two banks the short sale negotiations will be more complicated.
How are Orlando short sales priced and who prices it? That is not a simple answer. Initially the listing agent sets a list price based on their own opinion and typically the bank has the final word on what the short sale will sell for.
We are Experienced Short Sale Buyers Agents and can give you an idea of how well the property is priced and how long the wait may be. For more information on short sales please send a request and we will e-mail it to you.
Copyright @ Buyers Broker of Florida 2011 “How are Orlando Short Sales Priced?”