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Short Sale Waiting Game Proves Frustrating
Dear Phyllis,
In November I made an offer on a short sale. The home was listed for $819,000, I bid full price and the seller accepted. I spent $375 to hire an inspector and paid another $450 for an appraisal.
Then I waited, and waited and waited. Last week my real estate agent informed me that the bank countered my offer at $895,000. I can’t afford that much, so I countered at my maximum, $825,000. My offer was rejected and the home is now in escrow with someone else. Frustrated with short sale waiting game.
Dear Frustrated,
I certainly share your disappointment. It can be a very frustrating game when a client excitedly phones me about a home with a suspiciously aggressive asking price. Later just learning that it is a short sale, subject to the lender’s approval of the selling price and other terms. The issue with short sales is that some agents price them ridiculously low just to get offers; then submits the offer(s) to the bank and waits for a price. Often, the first buyer is used as a guinea pig.
When I represent a client on the purchase of a short sale, I suggest that the Residential Purchase Contract (offer) be written to state that the buyer does not perform their inspection until the lender has approved the short sale. I also suggest that my clients apply for a loan, order their credit report, but hold off on the appraisal; again until after the lender has approved the short sale. If you try this next go round, you will save over $700.00.
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