“Low-Ball offers”= 10% or more below listed price:
DO NOT bother to write them on Short-Sales.
1. Smart seasoned agents that represent the Seller won’t accept them.
2. Problem that arises with this type of offer is the Lenders will completed a “BPO” (Broker Price Opinion) or an appraisal on the property and know what the current market value of the property is. There is only 5% chance they will ever approve the “low ball” offer that was submitted. The reason why 5% get approved? The property is undesirable, so much so you can’t get a loan on it and to be candid probably “sucks”.
3. When the low ball offer is not approved, the Buyer simply moves on to the next property, however my Seller may not have enough time to obtain another offer before the last stage of foreclosure can be stopped where its = SOLD AT AUCTION.
4. On top of that: Some Buyers are encouraged by their agent to write numerous Short-Sale offers and after a 3 month wait they hope 1 gets approved. When they are approved that Buyer will be thrilled. However, the clock kept ticking to whole time for my Seller. That “low-ball” offer just wasted precious time my Seller did not have.
