WHAT SHOULD I DO WITH A LOW OFFER ON MY SHORT SALE LISTING?
Short sales are unique in a lot of ways. One way they aren’t unique here in Las Vegas is that the bank holding the lien will want fair market value for the home. The lien holder will recognize that they need to offer some discount for the inconvenience, but that discount is usually in the form of buyer closing costs or a couple of percentage points off the fair market value.
When we receive a low offer on our listings, we will counter back to a price that we deem a good value to the buyer and reasonable to the lien holder. We also counter out the costs that we know the lien holder will not allow and we counter with information to the buyer and buyer’s agent that enables us to know that the buyer fully understands the nature of short sales. Sometimes the buyer decides to reject our counter. That’s OK because it’s likely that buyer wasn’t going to be patient enough to endure the process. We would rather leave the home on the market to attract another buyer that will endure and help us to close the escrow. If the buyer agrees to our counter offer, then we know we have a quality buyer that will be there when we get an approval from the lien holder.
When I’m working with a buyer that chooses to make an offer on a short sale, I will pull the comparable sales to evaluate the fair market value just like the lien holder will do upon receiving the offer. This gives my buyer the information well ahead of a counter we may get later in the process. My buyer will be prepared for the idea that the lien holder will likely counter back at a number that is close to fair market value and my buyer is prepared to accept that counter and proceed. If the lien holder doesn’t counter and accepts my buyer’s offer, even better! My buyer gets the great deal!