If the agent has the price of the Short Sale too low – you are going to be disappointed. With Short Sales, real estate agents are given an “excuse” to put a home that is for sale at a price that is “way too far” under market value.
The Reason is because there is a exclusionary statement regarding short sales, “Sales price, commission and all other terms subject to Lender Approval”. The Lender this statement talks about is the Bank or Banks that are holding the “mortgage” or “paper” on the home being sold short!
With a regular or foreclosure listing, that exclusionary verbiage does not exist. If you give the human seller or bank owned seller what they want, as far as list price is concerned, you can get a loan and you don’t have anyone you are competing with, you should get the home.
But with Short Sales, that could be the very reason an agent puts a property too far under market value.
What if an agent takes a short sale listing that has no hope of closing? Maybe something with three loans, maybe a situation where the seller had tapped out the property with regard to each loan, or maybe a home that is owned by an investment group? Something that the bank will never approve? The agent could be using a property, of this type, to generate leads. In fact, if said agent puts this home at “way too far” under market value – they will generate a lot of phone calls and email inquires. That will help them obtain new clients and build their database.
Is that the right thing? Of course not – Just make sure you have a qualified Realtor on your side that can run the interference when it comes to approaching any and all short sales – Or any property for sale, for that matter!!!