Short Sale Pricing Discussion

[Bobby J]

Which Bank? Congrats. It seems like they are starting to move faster on some of these.

 

[Alyoopster]

Which Bank? Congrats. It seems like they are starting to move faster on some of these.

Again, this all happened so fast but i'm pretty sure it was Chase.

 

[Smiling JOe]

Hello! Very interesting discussion about short sales! We put an offer on a short sale house in Miramar Beach at the end of January and our listing agent told us there were 2 other offers on the same house. She even told us the amount of each of the other 2 offers so we offered more (actually we offered the full listing price). Who decides to accept an offer? The seller or the lender? Can the seller just sit around collecting offers until who knows when? Anybody know?

:shock: An offer price is considered to be confidential and cannot be disclosed by the listing agent.

The contract for sale and purchase is between the seller and the buyer, not the lender. Yes, the seller can sit around collecting offers, but that won't get them very far, and allows buyers to walk at anytime, since there is no contract with only an offer, and no acceptance. Something better comes along, and bye-bye.

I think that short sellers who simply collect offers, do themselves an injustice and that allows the banks to never make a decision, while they hope for a better offer.

 

[30ashopper]

:shock: An offer price is considered to be confidential and cannot be disclosed by the listing agent.

The contract for sale and purchase is between the seller and the buyer, not the lender. Yes, the seller can sit around collecting offers, but that won't get them very far, and allows buyers to walk at anytime, since there is no contract with only an offer, and no acceptance. Something better comes along, and bye-bye.

I think that short sellers who simply collect offers, do themselves an injustice and that allows the banks to never make a decision, while they hope for a better offer.

Well not always, if she made those offer numbers up in her head.. she wouldn't be violating a contract, she'd just be comitting fraud. :roll:

Allyoop, you might want to talk to the selling bank, you may be the victim of fraud, in which case you could withdraw the offer and negotiate a lower price. Your whole situation sounds very fishy! Short sales going through in days, your agent telling you what the other offers are, you feeling compelled to offer at list... fish fish fishy!

 

[AAbsolute]

I'm guessing it wouldn't appraise at the higher "asking" price. It's a lot different in Dodge since one can no longer get a "Hit This Number Appraisal" anymore.

.

There's more wrong with this system than can be fixed. How is it that now a buyer can want to buy and a seller can agree to sell and at the same time an appraisal can come in considerably less? Now we're back to fixin' appraisals on the downside.? There is no more pure valuation than an arms length agreement. Maybe we're out-thinking things again with our huge brains.

I saw that provision in the Realtor contracts about the property now having to appraise out.

 

[AAbsolute]

The bank's appraisal was done following our offer and came in considerably lower than our
offer much to our surprise We thought based on the numbers,we were getting a pretty good deal
at the full offer price. After the appraisal, which was pretty late in the game we would not have
gone forward with the full offer contract anyway. It was a long and winding road and had a good
result for us but seriously I think we had a good realtor, were aggressive from the start and just got a little lucky. Also we were not in a rush and were willing to stay in the game for a while. I don't know if that answered your question but its the best we can understand it. Hopefully the banks will get better at this game of short sales. Good benefits for all.

So the bank brought out a new lower price after you had a deal to buy the property for more. They did this without prompting? Did you have a kick out clause regarding appraisals?

 

[Zirondelle]

:shock: An offer price is considered to be confidential and cannot be disclosed by the listing agent.

The contract for sale and purchase is between the seller and the buyer, not the lender. Yes, the seller can sit around collecting offers, but that won't get them very far, and allows buyers to walk at anytime, since there is no contract with only an offer, and no acceptance. Something better comes along, and bye-bye.

I think that short sellers who simply collect offers, do themselves an injustice and that allows the banks to never make a decision, while they hope for a better offer.

Thanks for your response! Our agent told the listing agent not to disclose our offer to anyone since he/she is such a blabber mouth.

 

[Bobby J]

So the bank brought out a new lower price after you had a deal to buy the property for more. They did this without prompting? Did you have a kick out clause regarding appraisals?

You keep on trying to make sense of all this.... LOL! It is pretty amazing. This is the stuff I have been talking about with Banks. Clueless!

 

[Bobby J]

Thanks for your response! Our agent told the listing agent not to disclose our offer to anyone since he/she is such a blabber mouth.

That reminds me of the line in Horton Hears a Who. "Dont worry, we won't tell anyone and if we do, we will tell them to not tell anyone".

Congrats on your fast short sale!

 

[AAbsolute]

You keep on trying to make sense of all this.... LOL! It is pretty amazing. This is the stuff I have been talking about with Banks. Clueless!

Bobby, I had the inside on a bundling of REO's deal with a local bank. I can tell you that some banks are working a plan that they know an awful lot about. Fact: You will see banks call loans and take real estate in order to add some value to their bundled deals.