Over the last few days I've had a number of calls from agents on my Belmont Bay short sale listing Some of them have asked the important questions about the short sale package but most of them have skipped past it and asked "so what will the bank take?"
In fact pricing a short sale listing is the same as pricing any other listing. You can list it low, you can list it high or you can list it in line with the other comps in the area. If you list it low sure you can generate multiple offers, which on a short sale isn't always the best way to get the bank to act or you can list it high and give a buyer the opportunity to feel they are getting a deal by making a lower offer.
However if you price it right and the bank sends out an appraiser who says "yes it is priced right" you have a much better chance of getting your deal closed. So when an agent asks "so what will the bank take" my answer is always going to be "list price." Protesting that the bank should be "happy" to receive a cash offer of $50,000 to $75,000 isn't realistic and I wouldn't be doing my duty to the seller by telling them to accept it.
Though I don't list short sales by the dozens I did just get an approval back from the bank on one in 14 days recently. The appraisal supported the contract price which I think made it a "no brainer" to the lender. As we see the percentage rate of short sale closing move upward I think more agents have gotten the message that short sales need to be priced where the market dictates. Pricing them low or pricing them high isn't going to get you to closing.
Check the comps before you ask "how much will the bank take?" If the property is priced right then, say YEA and know your client has an opportunity to get a nice property at a great price.
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