Short sale properties can be a great source of income for investors and a great deal for home buyers.
It’s important to keep in mind that a short sale is one where the bank has approved a loss on a current loan. They’re losing money, so they want to unload.
Generally, the current owner is in a rough time, or wouldn’t be facing the loss of the property. Difficult times mean tremendous amounts of stress and emotional turmoil.
How to Bid On a Short Sale Property Fort Myers
Managing relationships is always the key to any negotiation.
For the bank, a short sale is an unemotional transaction. An owner may be letting go of a property with great emotional significance.
You’ll have to take different approaches with every party to a short sale transaction to get the best result.
Data is on your side. Look up comps to get an accurate picture of the market, and seek out justifications for your offer prior to submitting a written bid.
In a short sale, you have to get agreement from the owner and the bank(s) involved on the purchase price and the terms.
Getting written permission from the owner to discuss terms with the bank can be really helpful, but check with a good lawyer to make sure you have the right documents before you ask the seller to sign anything that might violate FLORIDA law.
Negotiating with a bank requires patience and strong relationship-building skills. Banks are often bureaucratic and may take days or even weeks to respond to your offers. During this time, they might request additional Broker Price Opinions (BPOs) which are essentially evaluations of a property’s value by a disinterested professional. They may also modify the appraisals you submit or even switch the negotiator handling your case.
Throughout this process, it’s important to maintain a courteous and professional demeanor. Be clear and concise in your communication, and avoid making emotional appeals. By staying positive and building rapport with the bank’s representatives, you’ll increase your chances of getting a favorable outcome.
It can be intensely frustrating, so prepare yourself and don’t stress.
Absolutely crucial for a smooth short sale transaction is securing loan approval well in advance of making an offer. This pre-approval demonstrates your financial preparedness to the seller and strengthens your position. Imagine the deal you’ve been waiting for comes along – a short sale priced perfectly for your budget. With pre-approval in hand, you can act swiftly and confidently, submitting an offer with the knowledge that your financing is already lined up. This can be a major advantage, especially in competitive situations where multiple buyers are vying for the property. The time crunch truly begins when your offer is accepted. The short sale process often involves additional hurdles and negotiations with the seller’s original lender, potentially causing delays. Having your loan pre-approved minimizes the waiting period once the short sale is approved and escrow starts. This allows you to move quickly through the closing process, securing the property before unforeseen circumstances arise.
We secure properties via short sale, and we work with many investors and buyers who are looking for great deals on properties in the Fort Myers area.
Give us a call 239-360-3176 or get in touch anytime to find out how we can help you!