Jacksonville Florida Short Sales FAQ: How Does The Bank Determine What Price They Will Take For My Home?
You are thinking about doing a short sale, and wonder how your lender will determine what price they will take for your Jacksonville home. It has nothing to do with what you owe on your mortgage. That number has no affect on the short sale price. When an offer comes in on your house and your listing agent has submitted the short sale package to your lender, the lender will order an appraisal (from an appraiser) or a BPO (broker’s price opinion) done by a real estate agent. The BPO and appraisal look at the available properties similar to yours. Most importantly, they look at the homes similar to yours, that have sold in the past 4 months. The appraiser and the agent will determine a price, based on those sold comps. The bank uses that value to determine what they will take.
Your listing agent, when determining the starting price needs to look at the available homes and the sold homes (past 4 months). They should not be pricing it at the mortgage owed amount, unless of course that’s what the value is. Chances are, that won’t be the case. They also should not be pricing it way below market value, just to get into a bidding war or to just get an offer in quickly. If the purchase price is well below market value, and the BPO comes back much higher, chances are the buyer will walk. Then, all the time the house has been off the market has been wasted. A good short sale agent will price the house based on the current market.
Got questions? Are you in a short sale and/or pre-foreclosure situation with your Jacksonville Home? Call me at 904-910-3516 or send me an email at firstname.lastname@example.org.
I am not an attorney or tax expert, you should seek legal or tax advice from an attorney and CPA.
Coming soon, more Jacksonville Florida Short Sales FAQ: