Making a Short Sale Offering on a home in Southeast Oklahoma.. Read on.. #5
The Phil Leng Team has written a great series on making an offer on a short sale listing. This is the fifth in the series and I appreciate them allowing the post to be reprinted here for my clients.
Help! I’m Making an Offer on a Short Sale Listing!! #5
You mean, another real estate agent can ruin our sale? YES!
Who are the players in a Short Sale transaction?
1. The seller
2. The listing agent
3. The bank (or banks) who lent the money to the seller .
4. The short sale negotiator
5. The foreclosure department of the bank who lent the money to the seller
6. The buyer
7. The buyer’s agent
8. The bank who is lending money to the buyer for the new purchase loan.
9. The appraiser for the new loan.
10. Other real estate agents who do Broker Price Opinions
Let’s zero in on #10 and talk about other real estate agents (not involved in the transaction) who do Broker Price Opinions.
So, how can another agent ruin our sale?
The bank orders Broker Price Opinions several times over the period of default. Certainly when a short sale Purchase and Sale Agreement is being evaluated, the bank will order one, and sometimes two Broker Price Opinions. They have a pool of real estate agents who are trained and approved to do that kind of work, and who have nothing to do with the listing or the sale. I am one of those agents.
No single Broker Price Opinion is given total weight, but in aggregate they form a strong basis of what the value of the property is.
The Phil Leng Team has completed almost 3000 Broker Price Opinions by now. Mostly they have to do with listing foreclosed properties. But sometimes they involve a listed property that is being sold as a short sale. I remember a Broker Price Opinion I was called on to do a while ago. My opinion of value was roughly $400,000. The listing price on the property was roughly $300,000. I scratched my head and checked carefully. What was I missing? I checked all the facts again.
In the end, I put a value of $400,000 on the property. I suspect in that case, I was the “other agent” who ruined the short sale that was in place.
So remember, another real estate agent can ruin our sale.
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