As a buyer you have taken all the right steps to purchase a home in this down market. Interviewed
lenders, agents, and have your pre-approval in hand and decide to write an offer on a short sale of which you know to be a great deal financially. You offer the listing price and think you are sure to get the home because " I'm giving the seller and bank the list price".
The home is priced well below any foreclosure that has even sold in that area.
You and the seller agree on the contract. Earnest money has been deposited, inspections are done, attorney has approved the contract. Then you wait for the bank to respond....
and wait, and wait, and wait, and wait.
Your agent finally calls with great news, the bank has come back with a counter offer. It's higher than what the property is listed for. What?! How can this happen? You offered list price! This is outragious, you are furious and tell your agent/attorney you reject the banks counter offer and want out.
Just hold on.....
Banks very seldom set the list price on a short sale. If the bank has, it is in the description for the listing with "price pre-approved by lender" ( or something to that effect ) in the language. More than likely, the seller and agent have come up with the list price.
Banks, upon receipt of a short sale contract, will order a BPO ( Brokers Price Opinion ) or an Appraisal. They will be aware of the area comparables within a one mile radius that have sold in the last six months.
If you are looking to buy a short sale, have your agent show you the recent sale of similiar properties. If the home is well below any current solds, plan on being countered higher than the list price.
Just because the short sale property is listed at a certain price does not mean that is the price for the home.
What if the bank counters back higher than any comparable solds in the last six months within the one mile radius? That issue will be coming in another blog post.
Luxury homes in Rockford, IL are hot, hot, hot!
Five homes listed since May 1, 2012 have already received accepted contracts.
In Loves Park, IL? Five luxury homes under contract since May 1, 2012. Average days on market? Twenty days!
In Caledonia, IL? Two homes with an average list price of 485,000 were only on the market for seven days. SEVEN DAYS!
I have buyers looking for homes in your area. Quite frankly, there is not enough inventory.
If you are looking to sell your home in Rockford, Roscoe, Rockton, Loves Park, or Caledonia now is the time.
Contact me today to set up an appointment so I can assist with your next move. Could happen sooner than you think!
You know that home you have had your eye on? It has a new owner, and it's not you.
It was perfect. Great location, great schools, and great price. The interior had everything you were looking for. Updated kitchen, walk in closets, master bath with whirlpool tub, finished basement, and fenced backyard. The new buyers are thrilled!
Don't let this happen! There are many programs available to assist you with buying a home. Some offer down payment assistance and closing cost assistance. In rural areas, the USDA offers 100% financing.
New listings are being snatched up quickly. The last few of my buyers have purchased homes less than 7 days on market. They had their pre approval letter and were ready to purchase when the home came on the market. Now is the perfect time to put your home on the market if you want to make a move. Most buyers are looking for a home just like yours!