I have a short sale prospect. This will be my first short sale. I have already started initial conversation with the lender on the loan. From reading and some experience looks like the lender will require a package from me (buyer and seller) requesting different documents. I will also be working with a Real estate agent.
At what stage the bank will be doing the appraisal. Would it be after the bank has the package from me or during the short sale process anytime.
The property needs lot of work. Basically I can call it a total rehab. I have also read the bank do offer sometimes discounts on the property value. E.g (not real numbers). If the property FMV is around 150K. I am looking to offer around 60K. If I can justify repair estimates of around 50K. This still leaves a difference of around 40K. Can the bank consider an offer of 110k on a 150K value property or I have to be exact with my offer FMV minus Rapirs.
Do you think its a good idea for me also to get my own appraisal done. If yes what value can it provide since I will be strictly negotiating on the bank BPO estimate.
Any tips would be appreciated...Thanks
I have worked with many short sale customers with the values from the bank sometimes fair, sometimes "deals" and sometimes high. They depend on Broker Price Opinions which are valuations by local realtors and appraisals.
The process is long and tedious but can create good results for a purchase and relieve sellers of obligations they can not afford. If you are not comfortable with the process there are many Attorneys who will do the negotiations for you at a reasonable cost expecially if you are in a state where they can close the deal and profit on the title insurance.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing