Do Costa Mesa Short Sales Come with Wannabe Prices?
For a discussion of why Costa Mesa short sales are often priced well under fair market value, please see Orange County Short Sale Prices.
This post is about managing your expectations regarding price when you buy or sell a Costa Mesa short sale and also understanding why pricing is so important.
Pricing a short sale way under market or making an offer to purchase a Costa Mesa short sale way under fair market value (the value at which a willing and able buyer would purchase it from a willing and able seller) may seem like a great idea in some ways, (after all pricing low may result in getting a quick offer, and buying a home cheap seems like a perfect idea) but the banks may see it differently.
Before approving Costa Mesa short sales, the bank will order at least one, and usually several, BPOs (Broker Price Opinions) when trying to decide whether or not to accept the offer.
The BPOs are usually done by real estate agents or by licensed appraisers who will look at similar homes that have sold recently in the same area. They may also consider the condition of the home and similar factors. Once they have reviewed everything, they give their opinion to the bank of the fair market value of the home.
If the BPO shows that the listing price and/or the offer are significantly below the fair market value, they are unlikely to accept the offer as they don’t want to “give” the home away.
This is why I refer to these under priced homes as having “wannabe prices”. They are not realistic prices in that they are not prices that the banks are likely to accept when they are asked to accept the Costa Mesa short sale because they are too far below market value.
Pricing a home whether as a buyer or seller is an important part of completing a Costa Mesa short sale. Though it may seem like a great idea to under price your short sale home or to make a “low ball” offer, both of these tactics may limit your ability to actually buy or sell the home.
If you see Costa Mesa short sales that appears to be unbelievably below the price of similar homes in the same area, you may wonder if this is a wannabe price that will never sell near that list price.
If you are considering buying or selling a Costa Mesa short sale and have questions or want to make a successful sale or purchase more likely by obtaining the advice of a real estate broker who has successfully closed many short sales, please call me at 714-319-9751.
Please see one of our successful short sale sellers below and homes for sale in Costa Mesa below that.
Originally published at Do Costa Mesa Short Sales Come with Wannabe Prices?