I will be searching properties for a buyer and see a listing with a very high starting list price and then I notice about every two weeks the property is reduced. You look further and you see that is a short sale. Short sales need to start their listings at a price that includes first and second mortgages, tax liens, past due water bills, Realtor commissions, administrative service fees, and closing costs. In other words they are demonstrating to the bank that they attempted to sell it at a price where all selling costs would be covered. The price is reduced every two weeks until the purchase agreement comes in. This might seem strange to the buying public, but the banks want to know that all efforts were made to not lose money on the sale. A Realtor that does their investigating properly can find the right point at which to introduce an offer that would be appealing to the bank. Timing is everything in a short sale. One needs to know their way around the multiple listings service.
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