So if you KNOW your listing is NOT going to get APPROVED at that price why do you have it listed at that price?
There are two sides to this issue-
One is from the listing side- your answer to me is that you want something to get the ball rolling.
Understandable, however, there is a code of ethics IF you are a member of your local Realtor® to follow and most states have false advertising statutes that you legally are bound by. Of course, you don't HAVE to obey either and you can CHOOSE then to accept the consequences of your actions or you can gamble that no one is going to take the time out of their busy days to file a complaint.
I do have valid counter points from the listing side but those are diverting from the actual point of this post. Suffice it to say- there are circumstances wherein there is no knowledge of what would be accepted or not.
The other is from the buyer side-
You as a buyer agent are supposed to do your own due diligence prior to showing your clients properties.
If you are looking out for your buyers one of the things you don't want to do is to get their hopes up only to have them come crashing down.
So you can show listings that are obviously NOT going to sell for even 10K above list price and look like a dummy when you start blaming the listing agent for not representing correct pricing or you could explain WAY before even making the appointment to show the home of your buyers' dreams to them- making full disclosure- that this house is NOT going to sell for the list price based on the comps you have pulled up.
Now your buyer can make an informed decision whether they want to gamble with whatever their offer price is and see if the short sale lender is going to counter or accept.
Sometimes I hear buyer agents tell their buyers that the short sale lender is going to have to adjust their accepted price if the buyers' appraisal comes in lower for the house. While this may sound logical- banks are not logical and there is no comfort level to give to a buyer that proves this is the case. Many times the short sale lender is not going to budge off their net they want even with an appraisal staring them in the face with a different number.
It all comes back to each party being responsible for their own stuff, their own clients and their own choices and decisions.
You may not be able to control the actions of others, but you can most certainly control yours.
Don't Delay! Don't Wait Until The Sheriff Is Knocking On Your Door! Pick up your phone and call us to see if you can avoid foreclosure.
To view Welington Florida Homes For Sale Click here. We know Wellington Florida Real Estate and Wellington Florida Short Sales and will help you get your home Sold if you need to Sell your home and help you buy your home in Palm Beach County Florida: Call us today.
Copyright © By Katerina Gasset 2010 * All Rights Reserved* So If You Know Your Listing Price Is NOT Going To Get Approved...*
Katerina,
There's an old real estate saying that goes "Buyers are lies and sellers are worse." Sadly when it comes to short sales all to often the same could be said of their agents.
All to many people believe they are entitled to the bank's money, they should pay attention to you instead of the mass media they'd close more short sales!
If you want to close on a short sale: "The deal has to make sense to the seller's bank!"
Bill
When the seller's are in a hurry doesn't it make sense to list low (not too low) and get multiple offers to help set the price.
Gene- Our sellers here are typically not in a hurry. We are in a judicial state. Most sellers here can live for 2 to 3 YEARS without making payments.
We can get multiple offers with a listing priced at market value.
I believe you put a seller at greater risk when you accept lowball offers that you know the bank is never going to accept. My job is to help the seller not just get to closing but also with the least amount of deficiency. The lower the price, the more the net loss to the note holder, the more of a chance the bank will go after the seller.
And how would multiple lower than market value help to set a price? The BPO has to pull the last closed in the last 30 days. Not what offers are on the deal or were on the deal.
There was a home listed in a neighborhood in Saline which we just closed on, it went Under Contract ASAP.
It was listed as a short sale.
Months later it is active for 50k more. I think the bank said, "no".
Missy- See, my point:)
Another good, common-sense post on short sales issues/concerns Katerina.
OBTW: Do you you a separate editor to create your posts in? I'm wondering if you use an outside editor because it's easier to do text fomatting in that the built-in ActiveRain editor!
Katerina, well said. If you have an educated buyer, there is the possibility of making an offer that's based on reality (over listing price) that has a good chance of approval. Has worked in the past.
I have run into this in my market, it said the short sale was approved at x and they were say listing it at x+10 to 20k. I didn't understand why they were marketing it higher than what the short sale was approved for. I don't do a lot of short sale stuff, in our market it is not as big a part.