Boise Short Sales - Video Have you been looking at homes lately and noticed a few homes that were priced so good that it seemed to good to be true? I receive calls from friends and family on a regular basis about homes they have seen online or grabbed a flyer from that were priced so much lower and better then a lot of other homes on the market. Almost every single time I receive one of these phone calls or emails and do a little bit of research on the home it turns out to be a short sale.
What is a short sale? A short sale is what when the person selling the home owes more on the home then the price they are selling it for and they don’t have the means to pay the difference.
Homeowner “A” owes $200,000 on their Boise home. The current market value is $150,000. If they were to list and sell their Boise home at $150,000 they would be short of what is owed on the mortgage by $50,000. Therefore they would be performing a short sale on the Boise property and asking the bank to forgive the $50,000.
The problem with most short sales is that the real estate agent comes out to the property and acknowledges that the current market value is $150,000 but decides to list the property for $130,000. Why? The banks won’t start the short sale process until they have an accepted contract on that home. Hence, the agent wants to price the home so low that they get a lot of offers immediately to get the ball rolling with the bank.
Now that the bank has an offer it goes into the “stack”. The turn around time for a response from a bank on a short sale offer is anywhere from 30 days to as much as 9 months. What happens when the bank finally reviews the offer?
The bank now has a few different options.
1. They can decide to proceed forward with a foreclosure on the property depending on how much is owed and how late the buyers are with their payments.
2. They can send a local Boise real estate agent out to the property to perform a Broker’s Price Opinion or BPO. If this number comes in significantly higher then the actual sales price the bank will typically come back with a higher purchase price on your home. Yes you read that right…you could wait 90 days or longer just to hear that the price you thought was to good to be true actually was!
3. They can accept your offer and proceed as is.
Why do most buyers and Boise real estate agents avoid short sales? Because you can wait an average of 90 days to get a response on your offer from the bank and the bank can come back at a higher price or deny the short sale all together. If you are not worried about waiting 90 days to be back at square one then it might not be such a big deal for you. But if you are looking to purchase a home and close on it in a timely manner at a price you agree to up front with the seller that wont change, short sales are not for you!
Above is a quick video that explains the Boise short sale process for you visual people.
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Data last updated on 2017-07-21 03:55:56