Other than increasing your offering price for the home, what kind of things can a buyer do to increase their chances of the bank approving their offer to buy the short sale home?
How do you make your offer stronger in buying a home which is a short sale?
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5 Responses to How do you make your offer stronger in buying a home which is a short sale?
If the home is in short sale then I think that you shouldn't worry about the amount you offer for it. You want to get the lowest price you can and if the bank is not willing to accept it then they can always counter.
To make you offer have more persuasion, I would include a pre-approval letter from a lender. The bank will be more likely to take the offer if it will be a smooth transaction.
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Have a pre-approval (financing) letter in hand and submit it (or a cash offer). Also, you may offer to purchase it in "as is" condition. This will limit the inspection etc….the inspections in this area have gotten out of control and have really complicated sales lately. That may be one way to go.
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be sure you have excellent credit and the appropriate financial considerations to get financing in place, a pre approval or mortgage commitment showing that you are serious and that your credit, income, and assets have been checked out and verified by a reputable lender will go a long way in getting the current note holder to agree to a short sale.
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Get a list of all the things needed to repair and several bids from contractors on cost of repairs. The more you can show what the home needs to bring it to FMV to the BPO the stronger your offer will look to them and ultimately the lender.
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You should have proof of financing no matter what. No bank will accept an offer without it. Paying cash might be more appealing to the bank because that would remove the chance of your being denied financing for some reason.
Other than that, the fewer concessions requested the better. Don’t submit an offer contingent on selling your own home. Don’t ask for any closing costs. However, under no circumstances should your offer NOT be contingent on financing (unless you’re paying cash) or an inspection.
Honestly though, in my experience the number one thing banks consider is their bottom line, so it all does go back to your offer price.
Your buyer’s agent should be helping you with this though. That’s what they’re being paid (by the seller) to do.
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