Short sales are sometimes like buying in a seller's market. You see most short sales are priced at a discount when compared to other standard fair market properties. The reasons, of course, is to entice a buyer to make an offer to get he negotiations started as well as attract a buyer who has the patience for the long process. Short sales can take months for lender approval!
Now, why are short sales similar to buying in a seller's market? Because in a really attractive property multiple offers may surface! I know of a case where a buyer submitted an offer on a short sale in Brevard County that was about 92% of the price the bank's previous counter price on another offer. On many short sales the bank will tell the listing agent what they will take, thus the "bank approved price" that ends up in some listing narratives.
In a declining market with unknown shadow market foreclosures, his was a reasonable offer. When the list agent calls me up and advises we have another offer coming in, we know we have to give our best and final offer.
The buyer asked me for my opinion.
I told him that if it were my money I would let it ride because the offer we placed initially was a reasonable offer given the property and the competition. Besides, if we lose that property, there is another short down the street! I found out later that the other offer never materialized so it would have been a bad move to increase the offer.
If you are considering making an offer on a short sale in Brevard County, Florida, remember your offer may not be the only one on the table.
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.