Low List  vs  Property Value  vs Reality plus the waiting game is what a short sale is all about?

Let me just let you know that agents usually list short sale properties - low - in order to get some attention to that property.  They do not list low necessarily because there is something wrong with the property and it is not worth more.

Agents have been known to list low in order to get the attention focus on the property, in order to get the offer, in order to get short sale negotiations with the bank.  In some cases, even with a low offer the agent is able to get a counter back from the bank on what they will consider to get the short sale moving  -- but sometimes it backfire and they just denied the low offer.

Also, agents rarely have any idea of whether or not the bank will take the offered price (that is the list price) and cooperate by selling the home for less than what is owed on it.  Short sales are not automatic.  It is not "ask and ye shall receive" an approval type situation!

What they do know is that they must have an offer and the borrower/homeowner must have a hardship to show that they can no longer afford the property.

Low list is not the market value.  The bank will probably not settle for less than or at least much less than what the home is worth.  Also note: Banks do not use what the listing agent serve to them as market value of the property ~~ they will go and get a third party opinion (either BPO or appraisal) from another agent that is not associated with this property.

Low List vs Property Value vs Reality plus the waiting game is what a short sale is all about:

Low list: check the properties in the radius of (at least ¼ mile) and see if it is listed low.  If listed low: is it to get attention to the listing or is there something wrong with the property?

Property value: recent sales in the area (1-3 months), Average sales price per square footage.  Is the property of the same kind (comparable); is it short sale or foreclosure.

Reality: Will the bank entertain a short payoff on this property? Is the offer with the property value?  Will the buyer hold on to "the waiting game timeframe"? And is the borrower/homeowner really in a hardship and cannot afford to pay for the property?

Waiting Game: Will buyer hang on and in some cases will the borrower/homeowner hang on for the ride of waiting on the bank to decide?

Some good news about short sales:  FHA, VA, CalHFA, NSP and other programs are not excluded from Short Sales.

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