Counter offer on short sale

**debbiesh** · 10-29-2011, 06:23 AM

I recently put a bid on a short sale home. My bid was over the asking price. I received a counter offer, stating that if the house is appraised lower than my offer I will still have to pay my offer price. They did receive several offers and countered them all. I do really like the home and am possibly going to offer $10,000 over the appraisal if it comes in lower, up to a maximum of my original offer. Any suggestions on how to counter offer.

**Greg** · 10-29-2011, 08:09 AM

You will need to have cash for any amount over the appraised value of the home. Lenders will not lend you more than the appraised value. So you will need your down payment money plus the amount over the appraisal.

Did the counter offer come from the bank or the seller?

Personally, I think you are making a big mistake. If you are willing to pay $10,000 more than the house is worth then maybe you should be buying a different house.

**Johnny Brooks** · 10-29-2011, 01:15 PM

The sellers bank will determine what this property will be purchased for. If they received multiple offers, more than likely the agent/seller priced the home too low. The sellers bank will also send out their appraiser for justification. Buyer Beware on this one.

**CC Lifestyle Realty** · 10-31-2011, 08:41 AM

In agreement with what the others above stated. What you wrote above would make me concerned. The Bank will determine what they are willing to accept in a Short Sale. Your bank will not loan more than the appraised value even for a Short Sale. I assume at this point you are aware of that however. If there are numerous offers on this house, and an appraisal has already been done (curious by whom; bank, previous buyer?) then it is likely a contract existed at some point and fell through. Personally I would not touch this house. Something doesn't smell right based on the information you provided. If you do desire the house be ready to pay cash for anything over the appraised value.