Short Sale Pricing Discussion

[AAbsolute]

ECAR still needs to do a little more work on shorties. The public is entitled to full disclosure in the listing remarks on sales type. Currently only agents can see the sales type or shortie disclosure in the agent notes.

And as far as a better opportunity to get a solo bid in on a shortie, it was there the whole time until ECAR changed the rule in late Dec. There was only a 5 week period where a listing agent could leave a listing active after they received an offer. Savvy agents would have written into the contract that seller must change the listing status to "contingent" from "active" even while the rule was in effect.

Excellent point about making the offer contingent on the Seller's agent showing it as contingent/pending. Either you show it contingent/pending or my offer is not an offer.

 

[Bobby J]

Can I continue to make questions and comments about short sale procedures in this Thread?

Ok. Go ahead.

 

[SHELLY]

Can I continue to make questions and comments about short sale procedures in this Thread?

Snap!

.

 

[Smiling JOe]

Excellent point about making the offer contingent on the Seller's agent showing it as contingent/pending. Either you show it contingent/pending or my offer is not an offer.

during the approx 5 weeks when the MLS rule was different, that makes sense, but isn't necessary, as the current MLS rules require any contract to go into pending or contingent, unless the contract has a 72 hour (or less) first right of refusal addendum.

 

[AAbsolute]

during the approx 5 weeks when the MLS rule was different, that makes sense, but isn't necessary, as the current MLS rules require any contract to go into pending or contingent, unless the contract has a 72 hour (or less) first right of refusal addendum.

Would you help me with definition? You noticed I wrote contingent/pending. I don't have a full understanding of the difference. What's the difference between contingent and pending in local MLS rule?

 

[Joe Mammy]

Would you help me with definition? You noticed I wrote contingent/pending. I don't have a full understanding of the difference. What's the difference between contingent and pending in local MLS rule?

If the contract has contingencies for financing, inspections or in the case of a shortie contingent upon the seller's lender granting the short sale. Once contingencies are lifted within the time frames spelled out in the contract then the status should be changed to pending as you count down to closing.

 

[AAbsolute]

If the contract has contingencies for financing, inspections or in the case of a shortie contingent upon the seller's lender granting the short sale. Once contingencies are lifted within the time frames spelled out in the contract then the status should be changed to pending as you count down to closing.

Thanks

What does your experience say is the percentage of MLS listings that have current/accurate status entry?

 

[Smiling JOe]

Actually, all real estate contracts in the state of FL are contingent, since if one party dies, the contract is voided. The only reason there is a contingency status is because during the boom, Realtors wanted to be able to put in back up offers if a property was contingent upon something like the buyer selling there own home. There were so few active listings on the market for longer than 60 days, that we could maybe also look at the contingent properties as likely potential properties for our buyers. Pending status had the feel of being a more solid contract, though those properties are also contingent.

In today's market, I don't really think there is a need for the two separate categories, because there are so many properties, that I doubt anyone is searching through contingent or pending listings for their buyers.

 

[AAbsolute]

Actually, all real estate contracts in the state of FL are contingent, since if one party dies, the contract is voided. The only reason there is a contingency status is because during the boom, Realtors wanted to be able to put in back up offers if a property was contingent upon something like the buyer selling there own home. There were so few active listings on the market for longer than 60 days, that we could maybe also look at the contingent properties as likely potential properties for our buyers. Pending status had the feel of being a more solid contract, though those properties are also contingent.

In today's market, I don't really think there is a need for the two separate categories, because there are so many properties, that I doubt anyone is searching through contingent or pending listings for their buyers.

Sounds like it's your opinion that getting the property listed as contingent or pending while a lender mulls their incoming offer removes all the leverage the lenders have been exerting on Buyer's offers.

 

[Smiling JOe]

It does remove quite a bit, but not "all." Removing all would likely mean giving the lender only ten days to reply, and not allowing commission to be a negotiable tool. The brokerage is paid by the seller, not the lender, so the lender shouldn't have a say in that.