Thank you for using Trulia. I hope this answer will help cement some of your thoughts. In a nut shell my short sale listings say do not low ball because after the analysis I price my listings by 12 to 15% below market value.

Even if there are no offers for a while and the realtor lowered the price to get an offer, the lender can still reject the package because his BPO (Broker Price Opinions mini-appraisal without the use of an appraiser) came in higher. The market is in a saw tooth recovery and lenders are hoping they can make some extra cash.

I close 85% of all my short sales and I follow the guidelines given to me by the lender and fall back on my education to successfully close every transaction. No all short sales will close.

Michele, if you are in the market to buy a property listed as a short sale, consider using a realtor who can proudly say he/she has had many successful short sale closings. I am CDPE certified and a graduate of HREU. The rules are still changing as we are still into un-chartered territory. Realtors need to protect themselves their brokers, sellers and buyers.

If you need to use my services I am in Brevard County.

Josephine Carpenter, CDPE
Realtor Associate
Keller Williams Realty
jocarpenter@cfl.rr.com
321 243 4519

Hello Michele,

Here in Brevard County the majority of the Realtors, like myself are listing their short sales based on a "formula" of around 85-88% of the mortgage that is owed to the lender when we originally list the property. This is the best that the lender could hope to recover from the property once it is a short sale.
As time goes on and the property hasn't sold, the Realtor will go back to the lender and ask for a price reduction. At this point ( at least this has been my experience with the many short sales I have listed and sold) the lender will have the Realtor do a comparitive market analysis on the property. A CMA is a process where the Realtor is using the properties that are currently listed or have recently sold in the area as a comparison to establish a new price.
The answer to your question is there is no set "rule of thumb". You need to work with a licensed Realtor who does business in the area you are interested in, and who is familiar with the short sale process in that area. They will be able to help you figure out how long the property has been on the market, and they will be able to find out if the price on the property is based on the "88%" or if the price is based on a CMA, BPO, or an appraisal.
If you are interested in property here in Brevard, I would be happy to sit down and go over all of this information with you. It's easier to explain the process to you in person or over the phone.
I have been doing business in Brevard for nearly 5 years. I have worked with numerous short sales and foreclosures and I have the expertise to get you through the process in a simple, easy-to-understand manner.
Give me a call or send me. My contact information is below. We could set up an appointment to sit down and answer all of your questions and help you find the property that is right for you.
I hope that I have been of some assistance in answering your question.

James Flanigan,Realtor
Coldwell Banker Coast Realty
(321)961-1641

No rules.

Many times price is just a number someone pulled out of air - often the seller who is not looking at the market but the moneys he owes on the loan. So here you would offer under

Sometimes, a Apprasial, CMA or BPO has been done, listing price should be near the money.

Sometimes the price is low, then lots of buyers will be all over the property - then you need to offer more than listing to will the property.

So how do you know!???? Michele unless you are really in the market and know the conditions, you Need to find a Realtor to help you. This person should know the area and to be able to give you a CMA on those properties you have Great interest so you know what the market is saying.

Glad to give you more help should you need it

352-978-4539


John