Buying or Selling a Short Sale in Los Angeles – Who Decides Which Offer to Accept?
Posted by Jenny Durling on Thursday, April 11, 2013 at 8:00:36 PM By Jenny Durling / April 11, 2013 Comment
Who decides which offer to accept? The Homeowner. One major misconception about short sales that has been repeated so often that people have come to believe it is that all offers are presented to the bank – and the bank's asset manager makes the decision on which offer to accept. Generally speaking, this simply isn't the case. In a Los Angeles short sale, the property still "belongs' to the seller and it is the seller (with the help of his or her agent, who makes that decision. The offer is then submitted to the bank along with a short sale package and a request for short sale approval. It is the Los Angeles homeowner who chooses the listing agent and sets the listing price, based on advice from his or her listing agent. As long as that Los Angeles agent is experienced in short sales and has prepared an accurate market analysis, the listing price should fall within a range that the lender will accept. Of course, there are exceptions. Some agents really don't know what they are doing when it comes to short sales and the just 'guess' what to do. Others will put ridiculously low prices on Los Angeles short sale listings in an attempt to generate as many offers as possible. In my opinion, this is a huge mistake. There is no sense tying up a property with an offer that is likely too low for the bank to approve. It is dangerous to the homeowner who is attempting to stave off foreclosure to waste time with such tactics. There are also cases when the bank's asset managers have a skewed opinion of property value and demand far more than the current market value. In that case, it is the agent's job to provide proof of market values and negotiate with them to prove that the price is right. There are agents who tell buyers that the bank will not pay for ANYTHING! Again, this is not necessarily the case. I have had great success in obtaining short sale approval for my clients while also having the bank pay for termite work, retrofit work and many other costs associated with a sale. Of course I let the buyer and the buyer's agent know that there is no guarantee, but it certainly doesn't hurt to ask. Including all of the pertinent repair costs and information with the short sale package at the time it is submitted with an offer is of paramount importance. If you need to short sell you Los Angeles home, make sure that you work with an agent who is experienced and knows the best ways to get the sale completed with as few complications for you and the buyer as possible. Call on me to sell your Los Angeles property for you. You will not be disappointed. Jenny Durling Broker L.A. Property Solutions 213-215-4758 info@LApropertySolutions.com LApropertySolutions.com