Negotiating on price of short sale

[Dennis Suratna]

I am just wondering whether it makes sense for a buyer to give an offer less than the price posted. Based on my understanding of short sale, the posted price is lower than the value of the property when it was purchased. Given that fact, it is highly unlikely that the lender or the seller to agree on a price that is lower than the posted price.

[J Scott]

Originally posted by Dennis Suratna:

What I meant by 'price posted' is the current sale price (e.g. price listed on Redfin etc). How is the FMV determined?

The list price is just a number that the listing agent and the seller decided to list the property for. It could be high, it could be low, it could be right on the money. Ultimately, once there is an offer and a signed contract, it will be given to the bank, who will do a BPO to determine fair market value; from that, they'll either accept, reject or counter the offer.

I've seen situations where a bank has rejected a contract, saying they want tens of thousands of dollars more and I've seen situations where a bank has accepted a contract and has indicated in their approval that they would have accepted a much, much lower price (and yes, I've seen buyers back out when they realize that the bank would have accepted something much lower).

So, just offer what you're willing to pay, and see what happens...