This 5,000 square foot home on the Eastside had a great location and lots of interest from buyers. Based on comparables, the bank valued the home at over $900,000.
Unfortunately, the owner hadn’t done a home inspection when they purchased the property initially, and we soon uncovered a host of problems. There were moisture issues and dry rot. The EIFS synthetic stucco siding had trapped moisture in the crawlspace and caused an outbreak of black mold.
The cost of repairs was significant, and the owners didn’t have the resources to have them done. We got offers, but they were in the $800-$825,000 range and the bank would not approve them. Now what?
First, we obtained an inspection report and received contractor bids to complete all the necessary work. We made the inspection report and the cost of repairs part of the listing. With this level of transparency, we pre-qualified only the buyers who were ready to take on the necessary repairs.
We received an offer for $815,000 and submitted that to the bank, along with an extensive package that outlined all the maintenance issues in detail, as well as the contractor bids for repairs. The lender and the investor approved the sale and it closed two months later.
The lesson: Your chances of successfully negotiating a lower price with a lender is largely dependent on the strength of the case you make to both the bank and the investor. The lender will not do this work for you.
Many brokers who work with high-end clients prefer not to invest the time it takes to negotiate short sales. In the past nine years, we have closed over 900 short sales, including many priced from $700,000 to over $2 million. Our goal is to help brokers like you provide the best possible service to their clients in the short sale process. We pay a 30% referral fee. If we can be of help, call Richard Eastern at (206) 612-5541.