Yes, short sale listing prices are ficticious. On a short sale, you should also not eliminate overpriced listings because again the asking price is "ficticious". In a few cases the price has been approved (and it normally will state this in the listing) so those properties can actually be bought at the asking price.
What happens is once the seller signs a contract and submits it to the lender(s), they will order an appraisal/Broker Price Opinion to determine the current market value. If the contract is not too far below market value the short sale will proceed, otherwise a counteroffer will usually be given. I've seen counteroffers above market value and the lender/PMI company will not budge on the price. The best deal you can get (if you're not an ALL CASH buyer) is on a bank owned property. You need an active agent to show you the REO the first day it comes on the market and submit your offer immediately because often the best deals go under contract the same day they are listed.
Hope this helps.
It makes little sense, doesn't it? But yes they can on a Short-sale. The price you see was determined by the listing agent and the home owner, but not the 3rd party who is the Mortgage Holder (lender) who happens to be the be the entity that will have to take the loss. That is why less than 1 in 5 short-sales actually close.
Here is a blog I wrote that explains in more detail:
My advice....save yourself a headache and buy a foreclosure or a traditional sale.
Charles Rutenberg Realty
The listing is a short sale, which means that the asking price of $105K is less than the seller's current mortgage(s) on the property and any offer to purchase must be accepted by the the seller's lender. The listing price may not be what the lender (3rd party) will accept. They may accept an offer of less or require more. In a short sale the lender will obtain the fair market value for the property in it's current condition, deduct the closing expenses of the seller and determine if this is an amount they are willing to accept to release the lien on the property.
Hopefully, this answers your specific questions. Should you have any additional questions or would like to work with a Realtor with experience in helping buyers obtain a short sale property, please give me a call. Always glad to help!
Short Sale and Foresclosure Resource
Graduate REALTOR University
Direct (352) 346-4949
It means that the asking price will not cover all the seller's expenses to pay off his mortgage and closing costs which defines a short sale. The lender is the final decision maker on accepting an offer. You can submit a lower price but I advise you to seek the advise of a real estate agent first as he can discuss recent comparable properties that have sold in that area to determine if your offer is reasonable.
I hope this is helpful to you.
Prudential Connecticut Realty
In short, it means the property you're interested in is a short sale.
I'm not at my office right now, but please feel.free to send me a brief email to Josh@HernandoLuxuryHomes.com and I'll email you back with a link to an article I wrote for Realtor.com explaining the short sale process and what you should expect should you choose to move forward with this property.
Thanks so much for your inquiry and I look forward to hearing from you at your convenience!
Joshua Hanoud, PA
Tropic Shores Realty