For those buyers who are considering a Coatesville short sale the golden question is often how much should you offer? After all you want to pay the least amount possible, but it has to be an amount the bank will accept. It’s a trick line to walk, but here are some guidelines that may help you when find the right Coatesville short sale to pursue.
First, when you make an offer on a Coatesville short sale you have to think like a BPO agent. As a general rule banks won’t order an appraisal with a short sale. It saves them money to have a local agent go and set a value on the home. Often, the BPO agent will take a simple walk through the home without stopping to look at a lot of potential problems. The BPO agent will normally look for comparable homes that sold as close to that home as possible and the value of the Coatesville short sale will be set according to those other properties. You can get the same information from your agent to help you understand what the bank is looking to get out of the deal.
Now that you have established a good idea of what a BPO agent has established as the value of the Coatesville short sale, you can work with your agent to make your own offer. As a general rule, lenders are more likely to accept an offer that is 5 to 10 percent lower than the BPO estimate for the value of the home.
Many times the reason that buyers are attracted to a Coatesville short sale is because they see the asking price established by the seller. The problem with using this as you guide is that the lender is not obligated in any way to accept this price. It is a general estimate of the home’s worth. Do your research and follow your agent’s advice and you will have a good chance of coming out on top.