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In the short sale world there is no usual and no average, each bank makes their own rules and they can change for every property. Right now i am seeing current market value less any repairs is only what most banks will take. They dont want the loss and dont need to take it,
The truth is that there is no "usual"....I would have words with higher authorities on 105 per cent of anything or look at the appraisal for holes in it...
People say a lot of things during a negotiation, some of it is true.
I would decide what I was willing to pay rather than letting them decide what they want to accept.
Scott nailed this one!
Craig Siphers I'd say, this depends on the lender. As Scott Godzyk said, there are no norms!
Although we compare averages and median in our business, it is comprised of individual transactions. Short sales are not as common in our market as they are in others but we are often finding distressed sales selling at or above their list price.
We put an offer on a reverse mortgage here and it sold higher than expected and needed a lot of work. The banks have deeper pockets and it does vary from property to property.
Banks do BPO's and and then use that information to give you an approval letter .
It used to be 85% in my market, but I haven't done short sales since 2010.
It just depends. Usually if we are in the ballpark, and the bank is motivated, then they take it. Also depends on how long it's been on the market.
I have had some go for 12% under and others that held tight close to appraised value. I think it depends on the negotiator.