In short sale when there is only one realtor for the buyer and seller. When the realtor lists the property in MLS. Does he have to list the property at a FMV (considering other comps). I on the other hand (buyer) can make an offer based on what the property value is worth FMV minus any rehab cost. Is this true.
e.g Lets say the property ARV value is around $200K. Can the realtor list the property around $150K. On top of that if I make an offer of $100K. Do I have to justify my offer (repairs...etc). How the bank looks at all this?
Any tips would be nice....Thanks.
The agent/owner can list the property for any price in the world. This has no relationship however to what price the shorted lender may accept. The lender will be looking for as close to current FMV as they can get. Yes, legitimate Contractor repair estimates can help justify your price, and I always suggest sending them in With the executed purchase contract/short sale package to the bank. The bank will send a different agent to do a BPO (broker price opinion) to help the bank determine what They think is FMV.
@Wayne Brooks is correct here. The real estate agent is going to work with the lender to determine a listing price. Generally speaking, they want to get the most out of the property as they can. That means that it will be listed at FMV.
That being said, you can submit any offer you like - though low ball offers may not be taken seriously. If rejected, you can continue to make higher offers. Submitting reasons why you believe the price is too high may help - and then it may not. Depends on the bank.
Usually a Realtor will list a short sale very close to what a bank will accept. Two cases exist. Case one the Realtor has a price the bank will accept, and case two they don't. In case one there is no reason to try and get more money. Short sales can fail and Realtor makes zero money, they just want the house to sell. In case two they don't know what they bank wants so they'll guess and hope for some good offers. Submit the offer to the bank and if rejected they will then receive a price the bank will accept. The bank will appraise the property on their own they won't care about your list of issues and why YOU think the property is worth less. Hope this helps
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