One of the most confusing things to a buyer on a short sale is the price. A property will be put on the MLS with a great price, the buyer will write an offer and the process begins. The offer is first submitted to the Seller, once the seller and buyer come to an agreed to transaction the offer is submitted to the bank. The bank has the opportunity to accept, reject or sometimes suggest a different price.
Does the bank set the price on a short sale? Yes and No – when the property is listed on the MLS the Seller and the Seller’s agent set the list price. However, once the bank comes into the negotiations the bank can and sometimes does give a different sales price.
The question then is…. does the buyer have to pay that price the bank would like to get to keep their transaction moving forward? The answer is like many in real estate it depends. If you want a fast close yes you would need to step up to the number the bank puts out there or your agent and the listing agent can negotiate with the bank.
Banks depend on agents and appraisers to give them an idea of the value of a property. They do not know the market, they do not know the area and they do not know why a house is great or not so great without a real estate professionals help.
Pricing of a short sale comes down to 2 things what does the market support and how experienced the agent is in the market and with short sales.