Home Buying in Phoenix>Question Details

Nia,  in Phoenix, AZ

Short sale/ bank approved dilemma.

Asked by Nia, Phoenix, AZ Fri Oct 31, 2008

There's this house that i've been noticing everytime I get online to look for homes in Phoenix. It used to be close to 200k when i first saw it but it vvas a short sale so vve never bothered vvith it. A fevv days ago, I came across it again and it didn't say anything about short sale, but the price vvas novv 140k. I looked online elsevvhere for more info on it, and I found various prices for it and various agents too! I am assuming agents changed and prices changed throughout the vvhole process of trying to sell the house.The lovvest price vvas the 140k though. Hovvever, vvhen my agent sent me the mls info on it, it still didnt say anything about short sale, but it vvas listed for 160k??!!I asked my agent if the listing agent is "xyz bcz i'm shoving the price as 140k",and she said NO. My agent called the agent and he said that they have no offers on the house yet and it's been on the market for over 7 months, but that THEY HAVE AN APPROVED PRICE OF 155K.VVHAT does that mean?? Plus..

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Answers

5
It is frustrating, isn't it!

Chances are, there was a previous buyer that did not wait around loong enough for the short sale to be approved. The lender most likely approved it tat the $155k price. If the home was not moving at that price, most likely they kept reducing it until they started getting bites. The reasons for the multople prices on the internet could be due to this scenario.
0 votes Thank Flag Link Sun Nov 9, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
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it means that someone was trying to negotiate the short sale and the bank approved it but there was not buyer in place so it did not go through.
0 votes Thank Flag Link Sun Nov 9, 2008
Hi Nia,
I dont know much about home buying but I've got such good help here I wanted to try and contribute something back. I'm not a realtor or expert in any way so keep that in mind :)

I had looked at a home that was 30% less than the current price. It was ridiculously low. The SELLER approved it at this price because they couldn't pay the mortgage and just wanted to get rid of it. They were headed toward foreclosure. So it was put up as a short sale. The seller had agreed to advertise it for $x and it wasn't selling, so (according to the seller's agent) they were told by the bank they needed to reduce the price. So they reduced it 30%.
The bank however wanted to get as much as they could because it was their mortgage and they were already losing money. So when they received an offer for the house at the 30% reduced price they said it wasn't enough.

I've heard that some agents will list a short sale home at a lower price than they are willing to accept in order to get people interested - then they will ask the buyer if they have an agent, would like to see other homes, etc.
If that is the case I would never agree to see other homes the agent offered - why reward anyone involved with sneaky sales tactics?
Not sure if that was any help but there it is :)
0 votes Thank Flag Link Fri Oct 31, 2008
Hi Nia,

What the approved price means is that they are most likely already part way through the short sale approval process. They may have had prior offers, that didn't go through, which resulted in the banki "approving" the price they were offered. If you offer 155K, the bank has already said they would accept that price. If you offer less you may find yourself back at square one, which depending on the bank, could mean waiting 60-120 days for an acceptance of an offer.

You don't have to offer 155K, just understand that it is a price the bank has already said they would take.

Hope this helps and answers your question...

Tylee Leighton
Windermere West Valley
tylee@windermere.com
0 votes Thank Flag Link Fri Oct 31, 2008
As vvell, can vve offer around 150k instead, or lovver? The house is vacant, if that means anything.
0 votes Thank Flag Link Fri Oct 31, 2008
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