Question Details

London Jones, Home Buyer in Chino Hills, CA

If the Bank approves a short sale and it is listed for $199K, why would the listing agent not take less than

Asked by London Jones, Chino Hills, CA Mon Dec 29, 2008

$220K? Just curious.

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Thanks everyone. That pretty much answers my question. See the Listing agent for the Bank and the my agent works for the same company. My first offer was $210K for awhile. Then a little later, my agent stated that the bank wanted more money, $235K and I said no but they increased my bid to $218K. Now after their "supposedly" back up offer of $230K is nowhere to be found, they said I could definitely get the property for $220K. I am just wondering if they are trying to nickel and dime me. I heard that the commission was only 2% to my agent or both. Not sure about that one. I am ready to walk out. They keep telling me that the price of the home that the owner paid for it was $495K 4 years ago.. See that is not my concern. I am only willing to go as high as $220K. Hang on or walk away while I still have a chance" :) Thanks again!!!
0 votes Thank Flag Link Tue Dec 30, 2008
Dear London Jones,

There are different possibilities of the situation. 1) The listing agent listed at $199K originally and received higher offer(s) such as $220K and approved by the lienholders (bank) at $220K. The listing agent has already experienced of lower offer $199K and got rejected by the lienholders. 2) The listing agent already has an offer submitted to the lienholders that is $220K, just waiting for the actual paper work to be finaled - the lienholder approval in writing and the buyer who submitted the offer has contingencies not yet removed. 3) The listing agent has back up offers in hand. 4) The listing agent does not understand how short sale works. 5) As per Naima mentioned that the listing agent is trying to generate more prospective buyers to submit offers. 6) There are many different senarios under different circumstances.

You should have your buyer's agent to explain to you how a short sale works and it involves a lot of complicated laws in different states purchasing a pre-foreclosure property.

Best regards,
Web Reference: http://tinacwong.com
0 votes Thank Flag Link Mon Dec 29, 2008
Huh??? some data has got to be missing here. A bank doesn't approve a short sale until they have an offer. They will "consider" a short sale.

The short sale is between the owner and the bank. The listing agent follows the sellers instructions.

I have noticed that some agents list a house for a bogus amount just to generate offers and then they put in the private comments that they can't guarantee that the bank will accept that price.

I hope that you have your own buyer's agent working for you.

Naima
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Mon Dec 29, 2008
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