Can you Negotiate the List Price for a Short Sale?
This is a simple question with a multi layered answer.
The quick answer is, yes, you can negotiate the sales price of any home on the market. In the case of a short sale, the first question you should ask the realtor before you make an offer is if the list price is lender approved. A short sale is a sale that the bank is agreeing to take less money then is owed on the house. Since the bank is involved, they have to approve of the sale price before it can go to closing.
Banks can be sticklers with price.
Banks can be sticklers because much of the time they are already losing money. But a bank also wants to avoid foreclosure which is the next step if a short sale cannot be approved. If the listing agent has experience with short sales then your chances are higher of being able to successfully negotiate the price.
If it is already an approved short sale, it can speed up the process, especially if you offer the already approved price. But if you offer lower, it may need to go through a few offices in the bank to be approved, which can take 3 months or even longer.
If you love the home but it is priced out of your budget or above market value, it may be worth a try in negotiating the price.
You will want your realtor to submit a report of comparable sales to show what the true value of the home may be in today’s market. You will want the short seller’s paperwork in order so if they do not have all of their requirements handed in to their bank, make sure they do before you even place your offer.
You will also want to remind yourself to be patient as it can be a waiting game to hear back from the bank if they accepted or not. Your realtor and the listing agent may be able to place calls into the bank to keep this short sale on the top of their pile.
Best of luck! If you are looking to buy or sell a short sale in the Northern Virginia area we would love to help you through this difficult process. We have successfully negotiated and closed on over 300 short sales. Let us be on your team to make it work!
Jennifer Young Homes
Keller Williams Realty