Calculating an Acceptable Short Sale Offer Price

When calculating a short sale purchase offer, you must consider a few facts.

It may take some time before the lender accepts and closing.
With the declining market, the price may continue to drop while waiting for the lender to make a decision.
If you wait too long after acceptance, the lender may deny the offer and the contract becomes void.
You will be responsible for any repairs the property may need.

When putting together a short sale offer, the rule of thumb is to offer 82% of the estimated value of the property. To get the property value, compare the property to the area’s lowest comparable sales. Then, reduce the value by the cost of needed repairs. Remember, you will be purchasing the property as/is so document all repairs the home will need.

Each lender is different and will have different rules for the estimated value vs offer they will accept. However, the general guideline is 82% of the estimated value.

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