I received feedback from the bank today on two short sales.
One was a beach front condominium in Destin that I had presented an offer of $210,000 to the bank about 3 months ago. After several frustrating weeks of little to no communication from the bank, they finally called and told me that the appraisal came in at $260k and to bring another offer.
The second communication was regarding a home for sale in Destin. The offer had been presented at $170,000 about four months ago. Again, after several weeks with little to no communication, the bank came back and said that the property appraised for $200,000 and to bring a better offer.
What's the point? Simply this: APPRAISALS ARE THE HOLY GRAIL FOR THE BANKS. Listing a home or presenting an offer that everyone knows is significantly below the appraisal is a waste of everyones time. The banks aren't stupid.
What's the best strategy? Have your realtor prepare a comparative market analysis to estimate what an appraisal might look at. Then make an offer 5%-7% below that value. That's the most likely scenario of buying something below market value along the Emerald Coast and in Destin.
Posted by Tim Shepard - Broker on
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