Real Estate Short Sale Purchase Offers Arkansas

Many realtors and investors are still unclear on how to determine a real estate short sale offer that is acceptable to the lender. The following steps are to be used as a basic guideline on determining what to offer the lender for a short sale acceptance.

Local Companies

McKissic Creek Office Center
479-273-3500
4 McKissic Creek Rd.
Bentonville, AR
Dalrymple Commercial
501 305-4257
1560 West Beebe Capps Expy
Searcy, AR
Trinity Consultants
(501) 225-6400
10025 W. Markham, Suite #245
Little Rock,, AR
Overstreet Appraisal Service
501-268-1680
PO Box 1373
Searcy, AR
Century 21 Glover Town & Country Realty
(479) 754-4040
101 Railroad St
Clarksville, AR
Arkansas Ozarks Realty
(870) 431-7000
Lakeview, AR
Century 21 Gateway Properties
(870) 793-8100
1085 24th St
Batesville, AR
Bonds Pam Real Estate Appraisal
(870) 772-2501
2812 Woodland Rd
Texarkana, AR
Wade Real Estate-Appraisals
(479) 965-8055
725 E Main St
Charleston, AR
Coldwell Banker Ozark Real Estate Company
(870) 892-7653
2303 Old County Rd
Pocahontas, AR

Short Sale Real Estate Offer

The word "short sale" has certainly been a buzz word in a distressed real estate market. However many realtors and investors are still unclear on how to determine a real estate short sale offer that is acceptable to the lender.

The following steps are to be used as a basic guideline on determining what to offer the lender for a short sale acceptance.

  1. Determine Fair Market Value (FMV). The FMV can be determined by evaluating sold, comparable properties in a similar or close proximity to the subject short sale property. A realtor will have access to the MLS (Multiple Listing Service) and can create a CMA (Comparative Market Analysis) for the subject property. This analysis will identify sold comparable properties with same square footage, bedrooms, baths, garage and other similar characteristics as subject property. Request the realtors use a sold time frame within 6-12 months when pulling properties in the immediate or surrounding areas. Usually the short sale lender will not consider any sold comparables that are older than 12 months and that are further away than 2 miles from the location of the subject property.
  2. Evaluating sold comps systematically. Contrary to popular and often misguided belief, you can use a formulaic system to work in your favor when determining what to offer on the short sale property. This system has been around for years, but for some reason you may have not heard of it mentioned dealing with real estate. Here is the system. You will use the law of averaging. The way this works is like this.

    Let's say you have eight sold comparables that are all similar in size, square feet, bedrooms etc. Here is how you apply the formula. You would take out the two highest comps and the two lowest ones and average the rest.

    EXAMPLE:

    You have a property you think is worth $145,000.

    You have a realtor pull a CMA and you find eight sold comparable properties that match the criteria above.

    The MLS shows the following:

    $159,000
    $154,000
    $153,000
    $161,000
    $148,000
    $143,000
    $146,000
    $151,500

    Using our formulaic approach you would take out the two highest sold comparables ($159,000 and $161,000). Then take out the two lowest sold comparables ($143,000 and $146,000). This would leave four other sold comparables.

    $154,000
    $153,000
    $148,000
    $151,500
    -----------

    You would then take an average by simply adding up the sum of all the sold comparables and dividing them by the total number of properties left. In this case, that number would be four.

    Total: $606,500 divided by 4 = $151,625

    You can reasonably justify the house may sell for $151,625 instead of the $145,00 you originally estimated.

    ...

Click here to read the rest of the article at HowToDoThings.com

Author: Cory Boatright

Featured Local Company

McKissic Creek Office Center

479-273-3500
4 McKissic Creek Rd.
Bentonville, AR
http://www.mckissiccreekcenter.com/

Regional Articles
- Real Estate Short Sale Purchase Offers Arkadelphia AR
- Real Estate Short Sale Purchase Offers Bella Vista AR
- Real Estate Short Sale Purchase Offers Benton AR
- Real Estate Short Sale Purchase Offers Bentonville AR
- Real Estate Short Sale Purchase Offers Blytheville AR
- Real Estate Short Sale Purchase Offers Cabot AR
- Real Estate Short Sale Purchase Offers Conway AR
- Real Estate Short Sale Purchase Offers El Dorado AR
- Real Estate Short Sale Purchase Offers Fayetteville AR
- Real Estate Short Sale Purchase Offers Forrest City AR
- Real Estate Short Sale Purchase Offers Fort Smith AR
- Real Estate Short Sale Purchase Offers Harrison AR
- Real Estate Short Sale Purchase Offers Hope AR
- Real Estate Short Sale Purchase Offers Hot Springs National Park AR
- Real Estate Short Sale Purchase Offers Jacksonville AR
- Real Estate Short Sale Purchase Offers Jonesboro AR
- Real Estate Short Sale Purchase Offers Little Rock AR
- Real Estate Short Sale Purchase Offers Mountain Home AR
- Real Estate Short Sale Purchase Offers North Little Rock AR
- Real Estate Short Sale Purchase Offers Paragould AR
- Real Estate Short Sale Purchase Offers Pine Bluff AR
- Real Estate Short Sale Purchase Offers Rogers AR
- Real Estate Short Sale Purchase Offers Russellville AR
- Real Estate Short Sale Purchase Offers Searcy AR
- Real Estate Short Sale Purchase Offers Sherwood AR
- Real Estate Short Sale Purchase Offers Siloam Springs AR
- Real Estate Short Sale Purchase Offers Springdale AR
- Real Estate Short Sale Purchase Offers Texarkana AR
- Real Estate Short Sale Purchase Offers Van Buren AR
- Real Estate Short Sale Purchase Offers West Memphis AR
- Real Estate Short Sale Purchase Offers White Hall AR
Related Local Event
Arkansas Association of Realtors Annual Convention
Dates: 9/8/2009 - 9/10/2009
Location: TBD
Little Rock, AR
View Details

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History