It sounds as if in your area foreclosures and short sales sell for the same as "regular" (non-shortsale, non-foreclosure) sales. Do you know what the payoff is for the 275K? Do you know what the payoff was for the shortsales and foreclosures that sold for 325K to 495K?
Remember I told you the bank will go back to their investors and ask them to approve the short sale. Remember we were talking 70 - 80 cents on the dollar (the pay off dollar). Could be the pay off for the 325K - 495K was a lot higher than your 275K. Also remember, short sales and foreclosure create an artificial market because they are NOT being sold at TRUE fair market value.

For instance, if an excellent, ready move in house is listed 275K for short sale and other comparables in the neighborhood, including recent foreclosures/short sale and regular sales were recently sold for 325K to 495K.
I think it would be foolish to submit an offer for the above mentioned property for less than 300K and expect the banks to accept.

my 2c

I would like to inject a bit of a different point of view into the discussion. First of, are the other comparables in the area short sales as well? If not, then it makes no sense calling them comparables because they simply are not.
I beg to differ that a bank will not accept a short sale if its priced below its market value. Banks now accept between 70 and 80 cents to the dollar of the mortgage pay off - that does in no way have anything to do with a home market value. They take the proposals to their investors to see if they will accept 70-80 cents on the dollar of their investment vs. the cost of foreclosure and then the cost of owning the home. BPO's are often done by agents not familiar with the particular market or by agents cranking out BPO's like a factory. Don't get me wrong, I have done BPO for short sales and I've done my homework to provide a true reflection of value. I've also turned down BPO's that were out of my market area due to lack of expertise. Again, the bank doesn't turn down Short Sale Proposals if they are under market value.

Now for the role of the buyer's agent in a short sale: I would hesitate working with an unrespresented buyer making an offer on my short sales because it takes an expert to explain the short sale process to buyers. If I had a dime for every buyer that had a "Oh, that's how it works! No thanks!" moment, I could retire. Most buyers have no idea what it entails to get a short sale closed. Most buyers are also not realistic enough to make a full price offer (full price meaning already below market value) on a short sale and are not willing to wait for the bank to make a decision.
The reason why most short sales don't close is because listing agents claim to know what they are doing, when they are actually clueless. It just takes one required document not submitted and the entire transaction falls through. Or all it takes is for a buyer to get cold feet, for a buyer to run out of patience.

Michael the foreclosures deals do go faster than the short sales. What makes them easier is the fact that as an agent we are dealing directly with the bank that has determined the value of the property and want to get it off their books. Every listing they carry is a liablity. It will be interesting to watch over the next month to see if fewer short sales are listed. Many of the major lenders have put a moratorium on them while they try to sort through a "recovery" plan. I hope your deal goes through!

Daniel, you're right...I was truly interested in some of those great deals but were gone instantly, such as these two:

7504 PLEASANT WAY, Annandale, VA 22003** Inactive
Beds: 5 Type: SFR Sq. Ft.: N/A Lot Size: 11,826 Sq. Ft. MLS #: FX6837263
Baths: 3/0 Built: 1966 $/Sq.Ft.: N/A List Date: 08/04/08 On Market: 103 days
List Price: $299,900

and another one ..I will look it up and post here soon...both of these were gone in less than 1 day after listing

I am not going to discuss anything here until my deal is completely done....
or maybe only when after I move in....lol

i think I am doing pretty good for a first time home buyer....I need to find a house and can't wait any longer....maybe houses continue to drop another 10 or 20 percent next few years but it's all right...I have plans and this house plan is good and I am gonna live in it for at least 10 yrs or maybe 20 or 30 yrs haha.
I am putting a huge downpayment...about 50%.

Daniel, I know there are inside connection but I aint have or know any.
LOL.

LOL

First of all, the homeowner, by contract with the listing agent, should not talk with you at all!

Any discussion of the house should go to the listing agent. There are hundreds of financially distressed properties in every city. To get the very best deals, you need to be friendly with an agent in the loss mitigation department who handles bank owned properties. The best deals never make it to market cause they sold to friends of the CEO. the next tier, they receive purchase agreements, within minutes of being listed.

this is big money

the bank is not going to give away a good house in short sale.

also be careful of agents claiming to be a "short sale specialist" thats laughable!

any agent can make an offer on any property, short or otherwise.... the buyers agent HAS ABSOLUTELY NO ROLE IN THE SHORT SALE PROCESS!

NONE, NADA, ZIP, ZERO!

Unfortunately if you see a home that is priced way to low in Springfield then the agent is just trying to get as many people in the door as possible. The bank will not accept an offer that is not at market value. They have checks and balances in place through a BPO (Broker Priced Opinion) and appraisals. If you are not working with a buyers agent to help you sort out the homes that are really for sale versus the ones that are just listed for sale give me a call.

Hi Michael:

I have been successful in getting my short sales approved and closed. I always frown upon agents who priced their homes 'ridiculous' low just to attract offers and hopefully start talking to the lenders.

Lenders prefer to see an earnest effort when you sell a property short, they like to know that we have priced the homes correctly and market the homes like we are supposed to. Unless there is an emergency -- like the house is scheduled for auction in two days - they will not approve an offer for a house that's listed artificially low.

I often see those listings and curious about whether they close and they often don't and ended up foreclosing. This is, to me, is not right by the sellers, by the buyers (who thought they might get this), nor by the neighbors (when the neighborhood price was dragged down).

Best,
Sylvia Barry
Marin Realtor