I agree with you Bobby --- and what --- does this mean for the offer that may be considered a short sale BUT the home is marketed on the mls at a higher price originally that .... if achieved would not be a short sale. Should we shoot it in the foot because we have a low-ball offer on the table? I do not think so...

Bobby, I agree that advertising as a short sale in the MLS probably inhibits some buyers from making an offer, and may lower the value of  the listing.  But since you have to disclose it before accepting an offer anyway, doesn't that have the same effect?

Brian - It may have the same effect on the value of the home, but at least the sellers are maintaining as much privacy and pride as possible.

Pam - In my area we have declined enough in value that most of the short sale homes could never be priced at a point that would make it a clean break. I am only interested in protecting the sellers privacy for as long as reasonably possible.

Bobby,

Just had a successful short sale close, my buyer is in the banking business and was aware of a short sale, but she really wanted the home.  The seller is in distress and wanted out and this was much better than a foreclosure.  Since we have to disclose on a lisitng, there is little else to do, we put those disclosures in the AGENT ONLY remarks in the MLS.

There is no good answer, but in this recent sale everyone was happy and the seller avoided a forclosure.

About 50% of the homes our agents are showing are short sales.  Are they supposed to spend half of their time and half the buyer's time without this important material information??

IMO, this isn't a matter of privacy.  This is a matter of disclosure.  You need offers and you need them quickly.  If buyers believe that they can get a good price with a short sale, they can pursue it if it's disclosed.  OTOH, if a buyer has a limited time to buy and close, such as a relocating buyer with only limited time to tour, they need to elimiated short sales because of the uneven and unreliable information about properties in short sale. 

Best be up front and deal honestly with folks.  Foreclosure isn't very private. 

Cathy & Gary - I agree 100% that it is a Win/Win for all parties! I have closed on many of them and the seller's are extremely grateful and finally at peace and the buyer's have gotten great deals.

Lenn  -  It is in my opinion a risk an agent has to take, showing homes that buyers either can't or won't purchase and spending the time to show them.  If they have no interest in the home than they do not need the knowledge of the short sale.  The price of the short sale alone will attract interest, but the upfront statement also attracts vultures and nosey neighbors.  I do not agree with the MLS mandating that we disclose it, someone can look at the home and make the decision if they are interested. Or if the agent is working with a time sensitive buyer they can call and ask.

I'm with Lenn on this one....especially about not disclosing to buyers who are relocating here. They are staying in hotels or base lodging and DO NOT have the time to wait and see. I just closed on a relocating couple from VA. They wanted in on a contract and in on a house within a 30-45 day period. I don't blame them ...their car came early and so did their household goods....and hotels are not fun to live in.  It would have been a severe waste of time to look at a bunch of homes only to find out that they have to wait.

Celeste- I believe you and Lenn are misunderstanding my position.  I believe buyers have the right to know if a home is a shortsale BUT only if they are interested in the home.  Maybe I am having a problem that does not exist in other areas (although I know not) but MANY agents are working with fake buyers. People that are just tire kicking without the interest or ability to purchase. Buyers agents (and I use that term VERY loosely) just call and set up showings on everything in a price range without living up to their fiduciary responsibility.  A true buyers agent should research a home and ask questions of a listing agent to see if the home is right for their client.  Their could be many reasons why  a home couldn't have a 30-60 day closing without their being a short sale that does not need to be disclosed in MLS but a competent buyers agent will ask BEFORE showing the home.