Yes I'll have to agree with Chuck. Unfortunately when a person decides to do a short sale there is no quick way for the seller to find out what the bank will accept before there's an actual offer. It takes an experienced and knowledgeable agent to be able to price a home accurately to try and mirror what the bank will accept. And of course all this will depend on value of the home, how much is left in the loan and other factors like how long the bank has held the loan. Before I started in real estate I was in the banking industry and am familiar with their criteria although I know that there criteria has definitely changed over the last few yrs. I hope this helps.
It appears this is a short sale (distressed property) that has just been pre-approved by the seller's lender at that price. Prior to getting an "approval" by the seller's mortgage company, agent and seller try to find a price that will sell - that's usually far below market value for a home that is not distressed. Once the uncertainty of the lender's position is removed, many buyers are more willing to pay market value. It gets more complex and I'd be happy to sit down with you and explain further how short sales work. If you don't already have a buyer's agent, contact me for a no-obligation meeting to talk about how to get you into the home of your choice.