Short Sale Pricing Confusion

By
Real Estate Agent with Associate Broker with HomeSmart ADRE# BR523915000

I have notcied some confusion on the part of some buyers and even their Realtors as to how the listed price of a "Short Sale" home comes to fruition.  Some believe that the price the home is listed for is the price the Lender agreed to.  This could be true, but in most cases it is not.  The first Listing Agent to get the listing on a home to be "Short Sold" may very well put an aggressive price on the home without ever having dealt/spoken with the lender up to that point. 

Some lenders will not give the price they are willing to accept or even approve a "Short Sale" transaction until an offer to purchase the property is brought to the table.  Other lenders require quite a bit of paperwork from the Seller to get the approval to "Short Sell", so in the meantime the Listing Agent will list the property at a price he/she expects (through a thorough market examination) will be accepted by the lender. The point is to inform buyers and their representatives that the bank may not accept your offer to purchase (even if it is for the full listed price). 

When you are preparing to make an offer on a property be sure to ask the Listing Agent if the price listed has already been accepted by the lender.  It would also be prudent to ask if all of the neccessary paperwork that the bank required the Seller to provide has been completed.  If the price has been accepted and the Seller has submitted all of the neccessary paperwork I have seen transactions similar close in 30 days.  Short Sales are not always the nightmare that you hear about.

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