Hi folks, Have you noticed that the contract price means absolutely squat these days? Nada. Zilch. It used to be that once a purchase price was negotiated you could be fairly certain that was the price the property would close at.
Properly pricing real estate has always been one of my strong points. I know the price is right. The Buyers and Sellers know the price is right. The ones having the problem are the Lenders.
It doesn’t even matter what side of the transaction the Lender is on. If they are the Short Sale lender they want more money and if they are the Buyer’s lender they want to lend less money. Now this really gets interesting when it’s the SAME lender!
Recently. I had one of my Short Sales under contract at $100,000. Based on recent comparable sales the agreed purchase price was spot on market value. The Short Sale lender was Bank of America. The Buyer’s Lender was also Bank of America.
After waiting for several months Bank of America finally agreed to the Short Sale but only if the purchase price was raised to $107,000. The Buyers, who really wanted the property, had no problem with this so we raised the contract price to $107,000 and both parties signed off on it.
Bank of America then gave us the written Short Sale approval and we moved towards closing. The following week the appraiser came out for the Buyer’s mortgage company (Bank of America) and appraised the property at……$107,000. All was well. Until……Bank of America ordered an appraisal review. The value was changed to $97,000!!
After another couple of weeks of negotiating we were able to get Bank of America to agree to do the Short Sale at $100,000 and the Buyer agreed to bring the extra money to closing to get the deal done at…..$100,000. We were right back where we started from. Maybe they just should have accepted my price to begin with. %$#&*^s!!
Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
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