How to Make an Offer on a Short Sale Property
How Much Should You Offer on a Short Sale?
What is the perfect offer? You want a deal but you also want the house. If you offer too low, the seller and bank may be offended. If you offer too high, you could have missed out on a discount or lower price with negotiations. With a short sale, your offer is not only going to the seller but also the seller’s bank. It could take longer to have your offer reviewed so you really want to be sure you offer the right amount the first time. The bank could still come back with a counteroffer.
Here are some tips to think about before you submit your offer:
1. Look at Comparables
What is the average price per square foot in the neighborhood? What have recent similar nearby homes sold for? Are there repairs needed or recent updates that could affect the purchase price? Your realtor should have researched these aspects and if they haven’t, urge them to or find another realtor. Knowing what similar homes are selling for will give you an idea of the fair market value.
2. What can you afford?
Do not offer more than you can afford and you may want to offer a bit less than you can afford in case they counter back with a higher offer. If you are looking at a home above your price range and hoping they will accept your lower offer so you can afford it, be prepared to walk away.
3. How long has it been on the market?
If this home has been sitting on the market more than 2 months without any offers, than maybe it is priced wrong or there is something that is turning buyers away. You may be able to get the price down if it has been sitting for a while.
4. Make your offer an odd number
This may sound strange but round numbers sound like every other offer out there. Going with an offer of $281,900 or $283,000 instead of $180,000 may actually stand out and make the seller think you have really thought through your numbers.
5. Make an escalation offer
This is a clause you can put in your offer stating you will pay X amount more than another offer up to certain amount. For example, you offer $155,000 but your escalation clause says you will pay $1,000 more than another offer up to $165,000. This helps your offer stand out in a situation of multiple offers but also keeps you from having to pay more than what is needed for a home. If this escalation clause is put into action, the sellers usually must show you the other offer as proof.
We hope these tips help you figure out how to make a better offer on your dream home!
If you are looking to buy or sell in the Northern Virginia area, this is a great time! Please give our team a call! We would love to help you find your dream home!
Jennifer Young Homes
Keller Williams Realty
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About Jennifer Young
Jennifer Young is the CEO and Team Leader of Jennifer Young Homes with Keller Williams Realty. Jennifer is a highly experienced real estate agent and industry leader specializing in the Virginia, Maryland and Washington DC market. Jennifer sells Regular Sales, Short Sales, Foreclosures, Rural Residential & Land. Her team has helped hundreds of troubled homeowners for FREE! Call Jennifer today for a free consultation at (703) 651-5655 or email her.
Hear from our clients…
Jennifer Young was a great agent, especially because of the amazing team working behind the scenes. Her and her staff knew so much about short sales.
Jennifer Young sold our home for us in Fairfax, VA and did an incredible job. It was priced right and went under contract in less than 10 days.
We worked with Jennifer Young and her team when short selling our property. They were on-the-ball and completely on top of my case at all times. .