For those stout of heart who have no qualms about waiting extended periods for answers from lenders on short sale offers, here are some tips to give your short sale offer here in the Phoenix real estate market the greatest chance of success:
1) Follow the comps, not the list price. If the market value for a property is $100,000 it’s highly unlikely the lender will accept an offer at $65,000 even if that’s the list price placed in the MLS by the listing agent and seller. Stay within a reasonable range of market value, even if that’s higher than the inventive list price, and you have a better chance of not being ignored once the lender’s property appraisals come in.
2) Complete your side of the paperwork. The bulk of the paperwork falls on the seller’s side but that doesn’t mean you can be missing important pieces on yours. Make sure your offer is complete – a fully executable contract, loan prequalification letter (if you’re going on your own, otherwise a Loan Status Report form from AAR) and an as-is addendum are the bare minimums. Local real estate agents have additional forms that provide you additional protections, which is another reason do it yourself may not be the best method.
3) Make your offer clean. Yes, it’s in the realm of possibility that a lender may assist with closing costs but the more requests you make as a buyer, the less likely a lender is going to bother considering your offer.
4) Be patient. There’s a process that needs to be completed. If you need a home tomorrow then a short sale isn’t the way to go. Understand up front you can wait months and the final answer could be no. That’s one of the risks of the game.
[tags]Phoenix real estate[/tags]