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To Short Sale…or to Pretend You Don’t Have To…

Over the weekend I showed a very nice home to a client. We have been trying to NOT get involved with the short sale/foreclosure fiddle-de-de…and concentrated our efforts on the “old-fashioned” seller-is-in-control deals. (We have a short sale offer out there that was written on Halloween…but that is a whole different story!)

Well…SURPRISE! We made an offer at what we considered to be a very reasonable price based on comps IN THE NEIGHBORHOOD. Yes…we were almost 50K under asking price (asking 475K we offered 425K)…but the offer was right in there with the SOLD comps. Well…the listing agent called me and said, “My client has to counter at full price or this home will be a short sale.” She then proceeded to tell me that she was well aware they were over priced…but her seller did not want to ruin his credit. I asked if her client could come out of pocket and she said yes…maybe $2000! Uhhhhh…that won’t do it! She asked if my client would pay over appraised value if it came in under. HELLO!!! I don’t think so. Not 50K anyway!!

I don’t get it. Why would you waste your time and money listing a property at 50-75K over value? Are agents just that hungry for a place to sit an open house in a attempt to pick up buyers or something?

Even when I examine the tax records of homes it is very hard to determine the sellers equity position as many 2nd liens resulted in folks being in an upside-down equity position.

So…lesson learned…resulting in one more phone call prior to showing homes asking the listing agent if the home is a potential short sale. The “good” agents get kinda offended…as they would never list a home in this manner. Sadly, I had six homes to show later today..and after talking to all of the agents…it is down to FOUR! Yes…I found two others who admitted they were overpriced and really should be listed as short sales.

Come on folks…lets try to help each other during this mess and list truthfully. Why waste each others time?

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