Hit Them With Your Best Shot: How Much to Offer on a Short Sale

What if you could buy your dream home in your ideal neighborhood at a lower price? A short sale home might be your chance to secure a great deal. These properties are often priced below market value, making homeownership more accessible. But here’s the catch: because the seller owes more than the home’s worth, the lender — not just the seller — must approve your offer. This added layer of approval can make buyers wonder: how much to offer on a short sale?

In this article, we break down the short sale process and share expert tips for crafting a competitive offer that will be accepted.

Step one: Talk to a few buyer’s agents!

Tell us a little bit about your plans (where you’re looking to buy and when you want to make a purchase) and we’ll connect you with top-rated buyer’s agents in your area. It takes only a few minutes, and it’s free.

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What’s a short sale?

A short sale is when a homeowner and their lender agree to sell the home for less than what’s owed on the mortgage loan. Short sales are unique because they require the approval of the seller’s lender.

The bank or mortgage company is the linchpin of a short sale. This comes with some unusual challenges, the biggest one being that the lender has to agree to sell the home for less than what’s still owed on the mortgage.

Just like in a normal home sale, the buyer and the seller are united in their goal of closing the deal. A short sale tends to be a much better alternative than a foreclosure — something that the bank, and everyone else, for that matter, wants to avoid.

That said, the short sale lender will have to approve the offer price. The buyer really just has one chance to submit an offer that will pass the bank’s standards for approval. This is why it’s important to craft a strong, competitive offer that aligns with the lender’s expectations.

Learn how to prepare a winning short sale offer that will land you in your next home.