Why Reduce List Price When Short Sale Is Pending??

Asked by Adrian Smith, Tigard, OR Wed Jun 13, 2012

We have an offer at the bank on a short sale in Tigard, OR. It's been at the bank over two months. On 5/27, the bank responded to our original offer asking for additional money. We revised our offer on 5/29, but only provided an additional 25% of their request.

Still waiting to hear from the bank, I looked at the listing today for the first time in a while and noticed that the seller's agent lowered the price on 6/6 and 6/13 (This property has been listed since Jan. '12).

Why would the seller's agent lower the price while our offer is still pending? She told us they weren't taking back up offers. Is this a bad sign for our offer? I need to know! Thanks.

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Ron Dotson’s answer
Ron Dotson, Home Buyer, Deadwood, OR
Fri Jul 6, 2012
Hello Adrian,

I'm no Realtor so I'm in no position to offer you any advice (in fact only medical problems are preventing me from being a buyer), but I'm confused. Did the seller's agent lower the price BELOW your higher offer price while the short sale at was still pending? If so that smacks of fraud to me (IANAL).

Also, IMHO you are under no legal or moral obligation whatsoever to a Realtor unless you have signed a written, binding legal contract between yourself and that Realtor stating otherwise. You should use any and all resources available to you while you are evaluating houses because this is probably one of the largest purchases of your life and one that may make you indebted to a bank for thirty years, so you are perfectly justified in using whatever means are at your disposal to ensure you do not get ripped off. Be sure to hire your own qualified inspector, do NOT use the inspector recommended by the Realtor because the Realtor only wants to sell houses and once the contract is signed and the sales commission paid you will be a forgotten memory. Although I'm sure Realtors want happy customers, I'm also quite sure that just like everyone else with a job their primary goal is to fatten their bank accounts, so I personally would never blindly trust anything a Realtor tells me -- especially since I have been blatantly and verifiably lied to by at least one Realtor.
0 votes
Carla Muss-J…, , Portland, OR
Sat Jun 16, 2012
If you are in contract, then I'm assuming you are legally represented by a Realtor. A legally binding contract has terms and conditions which need to be met and satisfied and we are not lawyers. Either ask YOUR agent or ask a real estate attorney. As Realtors we can not interfere with real estate agency.

Suzanne MacDowell should have shut up. Not only is she NOT a licensed real estate agent in the state of Oregon (she is not licensed to practice real estate here) she is not your agent and is interfereing with the agency relationship that is already established. And she is also very incorrect with everything she has said. Why? Because she does not know the local rules and standards of practice. How they practice real estate in New Jersey is vastly different then how we practice in the Portland Metro Market.

I'm not going to get into what's going on, although I know. But you need to ask your agent and please don't write questions in a real estate forum if you're second-guessing your agent. If you engaged the services of a Realtor and then go behind their back to ask questions on YOUR deal . . . that's tacky and unfair the the agent who is legally representing you.
0 votes
Sorry 'Voices' but I agree with parts of what she said, and dont have time to study it all or woud possibly agree with more of it. She is not interferring with anyones agency, as this question was posed in a public forum. Also, I dont believe it was stated that the buyer was being represented.
Flag Wed Jul 16, 2014
Suzanne MacD…, Agent, Morristown, NJ
Thu Jun 14, 2012
Depending on what type of short sale it is, the bank may be insisting that the agent lower the price. In a HAFA short sale, often the bank will send an appraiser and dictate the asking price to the agent and the homeowner. In my opinion, this turn of events is potentially good news, potentially bad news for you. Obviously, the bank is trying to get other offers at this point, otherwise why lower the price. However, if they don't get other offers within a fairly short period of time, that will make YOUR offer look more attractive. After all, time is money and the sooner they sell the home the sooner they get the bad asset off their books. Two months is not a long time as short sales go. Seems to me that you have a choice, stick to your guns and see what happens or raise your price and end the suspense.
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