Short Sale Percentages
I kinda want to take a poll or find a concensus. 1. On your first offer to short sale, what formula do you use, ie, x% of ARV or x% of current value before repairs? And what is that max % you're willing to accept? 2. Looking back on your successful shorts, after all the negotiating, on average what % did the bank settle on? I want to make sure my offers are not too low. So let me hear from everyone! :)
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I always predicate a short sale proposal upon the property's as-is, fair market value. I devote the bulk of the Proposal on denigrating the lender's perception of value, contesting the results of their CMA or BPO. If 75% is a benchmark, it makes sense to get the lender to think that their property is worth less than their information (BPO/CMA) suggests.
Negotiation is all about the transfer of information.....
FHA is running about 82% of the BPO. And of course you can greatly influence the BPO.