Real Estate Short Sale Purchase Offers Idaho

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

Colliers International
208-343.3124
755 West Front Street
Boise, ID
Vision Homes of Idaho
(888) 696-6499
2001 w. broadway
idaho falls, ID
Mountain Realty
(208) 734-2658
1061 Blue Lakes Blvd
Twin Falls, ID
McCann Daech Fenton Realtors Llc
(208) 726-3317
271 Leadville Ave
Sun Valley, ID
Radford-Luckinbill Susan-Realtor
(208) 788-1700
100 N Main St
Hailey, ID
Muffley Realty & Insurance
(208) 934-4484
122 5th Ave W
Gooding, ID
Johnson Dick & Associates
(208) 336-1882
2210 Broadway Ave
Boise, ID
Paller & Associates Realtors
(208) 365-5058
605 S Washington Ave
Emmett, ID
Buck Jason
(208) 622-3443
Sun Valley, ID
John L Scott Real Estate
(208) 365-0711
2517 Princess St
Emmett, ID

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

Colliers International

208-343.3124
755 West Front Street
Boise, ID
http://www.colliersboise.com

Related Articles
- Commercial Real Estate Idaho
Real estate is often known as the safest investment available. Because real estate investing executed with correct evaluation of the property (and its true value) can result in good earnings, it can become a regular job.
- Selling Your Real Estate Notes Idaho
- Looking For Real Estate For Sale Idaho
- How To Find Real Estate Agent Idaho
- FSBO Real Estate Idaho
- Building A Real Estate Investing Team Idaho
- Do You Need a Real Estate Agent to Sell Your House? Idaho
- How Real Estate Agents Get Paid Idaho
- Real Estate Website Management Idaho
- Real Estate Investing Basics Idaho
Related Articles
- Commercial Real Estate Idaho
Real estate is often known as the safest investment available. Because real estate investing executed with correct evaluation of the property (and its true value) can result in good earnings, it can become a regular job.
- Selling Your Real Estate Notes Idaho
- Looking For Real Estate For Sale Idaho
- How To Find Real Estate Agent Idaho
- FSBO Real Estate Idaho
- Building A Real Estate Investing Team Idaho
- Do You Need a Real Estate Agent to Sell Your House? Idaho
- How Real Estate Agents Get Paid Idaho
- Real Estate Website Management Idaho
- Real Estate Investing Basics Idaho

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