Unfortunately you're finding out what many buyers have, short sales can lead to a terrific buy, but there are going to be some headaches and a lot of time in between. The extra aggravation and effort may be worth the reward so long as your certain you're still getting a great deal in the end. Be sure to read the fine print of the contract. In addition to a higher price, they may also have asked you to pay items customarily paid for by The Seller such as transfer tax and title insurance. Hopefully you're working with a solid agent and they are helping you through the process. If this one doesn't go through and you'd like to pursue a buyer's agent, I own a firm in Northern Michigan that services that area. My agent, Mary Janik, is currently the president of the Traverse Area Association of Realtors and happens to live in Kalkaska. She's a wealth of knowledge and would be happy to help you through the process if you are in need of a solid agent in the future. She can be reached via e-mail at mary@homewaters.net. Good luck and keep in mind that there aren't many wonderful opportunities that can be had without some extra effort!

As has been reported back to you, yes, the banks can do whatever they wish. Get counsel from a trusted real estate professional in your area. Do you have a buyer's agent?

Mike,

The real issue that comes in to play here is that because it's a short sale the bank doesn't actually own the house at this point. They are not the sellers but are a third party who must give approval to the seller that they will accept less than what is owed for the house.

The listing agent's job is to price the house at what they believe is fair market in order to procure an offer. That doesn't mean that the bank will accept the listed price, however. It sounds like the bank has reviewed their losses and their valuation of the fair market price for the house and has decided that they want more than you've offered. Sensible or not they can do it.

Your options now are to counter the bank and see if they'll adjust it any more (this is not all that likely but might be worth fighting for if they are off base), accept the bank's price or go find another great home.

Best of luck!

With Your Success in Mind,

Shar Rundio
Keller Williams Integrity First Realty
480.560.7255
shar@anewthreshold.com
Twitter: @SharRundio

The banks are the owners and they do have a right to counter offer just like a regular seller and ask for more money. Before you go higher on your offer have a real estate agent in the area check similar properties that have sold and the prices of homes that are currently on the market.

Unfortunately yes, because they are in control of what it is going to be sold for . They are the ones losing money on the home and they get to decide how much money.