#2 Seller Myth In Short Sales; The Agreed-Upon Short Sale Price is the FINAL Price.

This is where many sellers – and buyers who make the offers – are caught off-guard by short sales. Though the initial short sale approval process is quite detailed and in-depth by the bank, they are primarily looking at the bottom-line (meaning, a short sale will cost them the least amount of extra time and money).  With the initial price approval they are basically willing to position the property as a short sale to see what they can get in return. They will determine a price range at that point, usually with a ‘bottom-end’ price they are willing to accept.

The process becomes confusing after a buyer makes an offer that is accepted by the seller and their listing agent; that’s when the ‘real’ short sale approval process begins. At this point, the bank will once again review the current market value of the property, including a full appraisal. They will also completely review the financial situations of both the seller and the buyer to ensure their investment is safe.

Through this detailed and often lengthy process, the bank decides if they are still willing to accept the price. And so begins the frustrating part of the short sale rollercoaster. They may choose to come back with a counteroffer, or pull the plug on the listing altogether. Ideally, they will accept the offer and it will most likely go smoothly after that. But you always have to remember; the bank will hold the cards as long as they want through what can be a lengthy process.

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