A real estate agent told me that the property has an approved short sale price. Would it be wise to offer less than the pre approved price ?
Maybe. But very few "bank approved" short sales are truly that. Usually what that means a is that there was a contract, with a counter/approved price from the bank, that fell apart. That approval was based upon a BPO that will likely have expired prior to your short sale being processed, which will lead to a new BPO, which means all bets are off.
Although the term "approved short sale" is often seen on the MLS You must understand there is no such thing. Short sales are approved with both the seller of course and the buyer. My team and I have successfully negotiated over 100 short sales and in every sale we ever closed were the buyer had to changed, the bank had to reapprove that buyer.
When you make a new offer on a preapproved SS the BPO is for sure the most important aspect of the new contract. On our deals we typically never want to challenge a good BPO. Conversely we always challenge bad BPO's with a new offer. It just comes down to if you can close and make money at the approved price do so if you can't make a new offer. Your agent should have a good sense of the banks tempriment.
Short sales are a great sorce of discount property, but in the end you have a bottom lime and your agent also has a bottom line. Remember your trying to develop a long term relationship with this agent and a new BPO may not be it the agents best interest.
Win/win/win is always the best salution....
Thanks Jim I'm going to see if I can get some comps...
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
Join the Largest Real Estate Investing Community
Basic membership is free, forever.