First of all, a short sale is a situation where the seller has a property on the market with the knowledge the purchase price will be less than the mortgage payoff. As a result of this shortage the lender(s) will have the final approval of any offer the seller accepts. [Referred to frequently as third party approval]
One writer posed the question if pricing a short sale so low that it was pretty obvious a lender would not accept the offer was not false and deceptive advertising. I am no lawyer but he did make a good case.
The reality is:
in short sales the seller (the one with the name on the mortgage note) wants a contract!But, does the lender want a contract at any price? I doubt that is the case! Short sales are very often priced at a discount however the discount is not as great as with a foreclosure (bank owned) property.
The decision process in short sales is often a protracted process that takes as long as six months or more. Thus the buyer is rewarded, in my opinion, for their patience!
So, can a short sale be priced too low? In my opinion, as a real estate agent representing the seller I say there is a price point where it is placing my client at a real disadvantage. My job is to get the best offer for my client and pursue lender approval.
For information on short sales (as a buyer or seller) in Brevard County Florida, call me at 321-693-3850 or email me, Gary L. Waters PLLC, Century 21 Baytree Realty, Rockledge, Florida.
