Fairfax Va – I was recently talking with another agent about a short sale he was working on. His seller owed $270,000 and the house was selling as a short sale for $170,000. The lender had two opinions of the house value.
They said the house was worth 220k but the agent thinks those are incorrect considering that the house has been on the open market for several months. Plus, similar homes have been selling for around 180k.
One of the main reasons that lenders turn down short sales is because they think think the house is worth much more. People give them an opinion on the value for nominal fees. Since these are the people who could potentially profit if the lender forecloses the house, they ftn give the house a high value.
You might encounter this dilemma yourself if you are selling your house as a short sale. Here’s a good way for your agent to handle the situation:
First off, they will need to “escalate” the file by appealing to the lender and asking them to reconsider.
Next, your agent needs to demonstrate and explain why they think the house is worth less. This can be as simple as sending the lender a Comparable Market Analysis, also known as a CMA. I frequently take this approach, in which I show them three similar homes that have recently sold. Then I compare these homes to the subject property and give an opinion of value based on those comparisons.
One of the best ways to compare homes is a price per square foot comparison. Why? Because it is hard to argue that a house is worth X, when all the other homes are selling for the same price per square foot.
Finally, have your agent request the lender order a new opinion of value. Most lenders will usually do this if a big discrepancy has been revealed.
If you find yourself a situation where a lender won’t accept your short sale offer, you might also want to consider hiring an appraiser and then requesting that the lender review the appraisal. What you’ll find is that it’s hard for a lender who lives in another city to argue with an appraiser by a local appraiser familiar with the market.
Do you want to know how to complete a Fairfax short sale and never pay the bank another penny? I can help you do that. Call me at (703) 322-0600 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can e-mail me at Thierry@ThierryRoche.com
Thinking about a loan modification? Our Fairfax Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender.
Thanks for reading this,
Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, ‘Inside Real Estate’
Phone: (703) 322-0600.
Thierry Roche specializes in loan modifications and short sales in Fairfax Virginia. Fairfax Loan Modification Help. Fairfax Short Sales. Fairfax Short Sale Realtor. Fairfax County Short Sale Realtor. Fairfax VA Short Sales. Fairfax Realtor.
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