If you’re asking how to bid on a short sale property Pensacola area and surrounding cities. In this article we will cover how to bid on a short sale property Pensacola area, and in the surrounding cities like, Milton, Pace, Cantonment, Gulf Breeze, Navarre, Fort Walton Beach, Crestview, and more.
Short sale properties can be a great source of income for investors and a great deal for home buyers. However, it’s a time consuming process. The other important question you should be asking. Would my time I’m spending on short sale deal worth it or should I focus my energy on something I get more bang for my buck?
It’s important to keep in mind that a short sale is one where the bank has approved a loss on a current loan. They’re losing money, so they want to unload.
Generally, the current owner is in a rough time, or wouldn’t be facing the loss of the property. Difficult times mean tremendous amounts of stress and emotional turmoil.
How to Bid On a Short Sale Property Pensacola
Managing relationships is always the key to any negotiation.
For the bank, a short sale is an unemotional transaction. An owner may be letting go of a property with great emotional significance.
You’ll have to take different approaches with every party to a short sale transaction to get the best result.
Data is on your side. Look up comps to get an accurate picture of the market, and seek out justifications for your offer prior to submitting a written bid.
In a short sale, you have to get agreement from the owner and the bank(s) involved on the purchase price and the terms.
Getting written permission from the owner to discuss terms with the bank can be really helpful, but check with a good lawyer to make sure you have the right documents before you ask the seller to sign anything that might violate Pensacola law.
Your relationship skills are super important during this process. The bank will often require days, even weeks, to respond to offers and move forward. Often they request additional BPOs (Broker Price Opinions) or modify appraisals, and they sometimes like to involve different negotiators.
There’s always going to be a time consuming process regardless of which bank you’re dealing with. Banks are not in the losing money game. I can assure you. If they’re taking a lose of a short sale is because they don’t want to spend a lot of time on dead deals. Meaning, they prefer to focus their energy on giving more money to qualified borrowers than try do get more money to sell a piece of property.
Houses are bank product. it’s used as a vehicle to lend money. What’s the most important thing to human after food water and air? Shelter!
This vehicle was created by the banks for them to make money by giving a loan as a product for them to multiply that money via interest rate. They’re in the lending business not in the real estate business.
But not necessarily your proposal for a short sale will be accepted. Sometimes banks will decline your short sale offer, simply because they deal with a real estate broker where they willing to foreclose on the property and listed with that broker to get more money.
Also, in some cases. Some banks will counter offer for higher price that your offer. In some cases. Way higher.
I will put it this way. It worth the shot. It’s hit and miss. Just don’t make it as your prime strategy. just for the fact reason the time it takes to complete one transaction.
It can be intensely frustrating, so prepare yourself and don’t stress.
Get fully approved for any loan you plan to take long before you make an offer. Make sure your lender can close at the drop of a hat, because once the approval comes for the short sale transaction you need to be ready for escrow.
We secure properties via short sale, and we work with many real estate investors and buyers who are looking for great deals on properties in the Pensacola area.
Give us a call 850-861-1326 or get in touch anytime to find out how we can help you!