Buying a Short Sale property is different than a regular home purchase since the owners of the property can NOT determine the sale price of the home. In simplest terms there are more than 2 principals involved in a Short Sale transaction and the folks in the food chain could determine your success or failure. For instance, the final sale price of the property is determined by the Short Sale lender.
But before we explore the difference between a regular purchase and a Short Sale purchase we need to ask ourselves, What is a Short Sale?!
Additional people involved in the Short Sale process are:
1) Short Sale Negotiator at the Bank: This is typically an Asset Manager who will review and process your Short Sale information packet prior to approval. This person will also order a Broker Price Opinion(BPO) which will be the starting point for your negotiations and will determine the approved Listing Price.
2) BPO Broker/Agent: This is the broker/agent retained by the banks or an Asset Management to develop and generate this BPO or an appraisal. It’s smart to make sure you meet this person onsite and make sure he’s not an out-of-area agent who is unaware of the local market dynamics.
3) Short Sale Negotiator for Sellers: Typically the Listing agent represents this role in this Short Sale Buying process. However, there are 3rd party companies that the Seller and the Listing agent could retain for a FEE to help them negotiate with the Bank.
Depending on the strength of the team representing the Sellers and their knowledge of the market, Short Sale process can be smooth or a disaster. But it’s smart to obtain your own Home Value from a broker before you write an offer.