Yes. The listed price means virtually nothing in some cases. A good listing agent will attemept to list the home as close to the actual value of the home as possible. This saves pain and heartache for all the parties down the line. If the home stays on the market with gradual price reductions, this will help show the bank the propertie's true market value.

I know short-sale buyers who wait months after the contract is signed by the seller, just to find out the bank will not accept the price. After gathering their own information, if the bank decides the home is worth more than the contracted price, it can be a huge blow to the buyer.

The buyer may not qualify for the higher price. Even if they could, they have already set their minds on the lower price and will have a hard time adjusting, even if the new price is still a bargain.

I try to keep buyer's aware of the current value of the home they are attempting to purchase by supplying them with comparable sales. If the contracted price is much lower, I prepare them for a higher value from the bank. I help them to step back and look at the new price compared to other homes on the market so they can make an informed decision.

I know that purchasing a short-sale listing can be very trying for the buyer and the seller. But sometimes the buyer can get a home for slightly less (5% or so) of the market value. So hang in there!

Hi, Dlhorsewood
The listing agent did a comparable market analysis and listed the house to the values around the area.
If and when the seller's lender send an agent or appraiser to do a Broker Price Opinion to see what the property is worth, can either be higher or lower. It all depends if the area is in a distressed area. If it is priced correctly and it takes 4 to 10 months to close, it might not appraise at the offer price. (It has happend to me, just takes a couple more days to negotiate. Either come up with the remaining amount or have the selling bank lower it to the new appraised value.)

Hope this helps,
Jes Sierra, B.Sc., Realtor®
http://www.hellomynameisjes.com

With a short sale the home owner owes more than the current value of the property. So the home owner will agree to virtually any offer presented, but the home owners lien holder ( the institution that loaned them the money) needs to approve the sale in order for the sale to actually take place.

I think what you're talking about when you say that the bank will "re-value" the home, is the bank ordering a bpo (brokers price opinion). This is done in order to determine market value for the property, typically the lien holder will accept somewhere between 8-15% less than the value indicated by the bpo.

The simple answer is yes the listed price is basically meaningless and you may be asked to increase your offer.

Yes. The owner of the property can do whatever they please.

Plus, banks have been known to do odd things.