Recently, a buyer client of mine looking for property in Laurel real estate, asked me the best way to write an offer on a short sale. This client is not an investor, so what I explained to her applies only to this particular situation. She saw a home in her price range on the internet. The home was priced at $180,000. This particular home had sold for about $290,000 two years earlier. Recent sales in the neighborhood for this particular model were significantly higher than $180,000. If you recall my earlier blogs on short sales, you know that I feel we will be wasting our time on this. However, she wants to write an offer and asked me the best way to write the offer.
We have already looked at comparables in the neighborhood, so we know the home is significantly under priced. I told her the first thing I need to do is call the listing agent. My questions to the listing agent will be; have you been in touch with the mortgage holder?; is there a second mortgage holder?; does the bank know you are listed at this price?; The answers to those questions will help determine the likely outcome of our offer. In presenting an offer my buyer will need a letter from her lender stating she is approved for a loan at the sales price. I need to write a crisp clean offer….the contract must look like a professional wrote it. The offer needs to be delivered. I must have a continual follow-up with the agent to check on progress. On average we will probably not hear anything about our offer for about two months. In the meantime, my buyer will continue to look for homes. If she finds something better we will withdrawl our offer on the first home and write a contract on the second.