Chicago Short Sales: How to get your short sale offer approved

Posted on September 7th, 2010 in Financing, Market Conditions, Other Real Estate, Short Selling/Buying.

Chicago IL – Buyers often get frustrated with the short sale process. “I made an offer on a short sale property six months ago. How come I haven’t received an answer yet?”, they ask us. It is fairly simple to determine if a short sale offer will be approved.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

You just need to know what the lender’s guidelines are for approval. Most lenders will first order an appraisal to determine the value of the home. They don’t want to sell the home for less than the appraised value. The appraiser will look at recently sold properties and how they compare to the subject property.

They will use that info to determine the Fair Market Value. They turn in their report to the lender. The lender uses the reported value to accept or deny an offer. If the offer is substantially lower than the appraisal, then they will reject the offer. However, they will usually accept offers within 5% of the appraised value. Obviously this varies according to the lender and the circumstances.

So, you want to know if your offer will be accepted by the short sale lender? Ask your agent to put together a CMA, also call a Comparable Market Analysis. This is your agent’s opinion of the value of the property. If your offer is within 5% of the agent’s opinion of value, then you have a good chance at the lender accepting it.

If your offer is below that 5% mark, then there is still a chance the lender will accept it. However, the odds decrease substantially. If you want a second opinion on the value, then order an appraisal. You can send your appraisal to the short sale lender.

It will be hard for the short sale lender to argue with an appraiser’s opinion of value for a property. An appraisal that backs up your offer price will go a long way towards getting your offer accepted. Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.

Send me an e-mail at myrealtorphil@gmail.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Remember to visit my Chicago short sale blog frequently at www.Chicago-ShortSaleBlog.com

Thanks for reading this, Phil Buoscio.

Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..

Phone: (312) 953-6725. myrealtorphil@gmail.com.

View My homes for sale at www.BetterLivingRealty.com.

Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information is provided as a courtesy to our viewers to help them make informed decisions.