Home Buying in Piscataway>Question Details

Home Buyer P…, Home Buyer in Piscataway, NJ

I am viewing a number of short sales and foreclosures. More than once the home was listed say for example

Asked by Home Buyer Piscataway, Piscataway, NJ Fri Jan 23, 2009

225, when I go to see it the story has changed and the bank wont take less than 275. Is there not something wrong with this? Can a broker legally do a bait and switch? Shouldn't the listing read the true asking price?

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My experience with short sales is that the bank will give no indication about an acceptable offer until and fully executed offer is delivered to them with the short sale package (hardship letter, HUD 1, etc). Once an agent has that number the MLS should be changed to reflect that. On my short sales, if the bank has stated what it needs to net from the sale, I pass that along to consumers and REALTORS, so no one is wasting time.

I would contact your County Board of Realtors and explain the whole situation to them. That way you can further explain the exact circumstances.

Laura Giannotta
Keller Williams Atlantic Shore
0 votes Thank Flag Link Fri Jan 23, 2009
I'm sorry John that you would find the question insulting. I am sure you are beyond reproach. I have since moved on from this particuliar home due to all the dishonesty. I still dont know if it was a short sale or REO. I was given so many conflicting stories that it made my head swim. Well, it has been months the home is still listed and it's still listed at 225 with the agent knowing full well the bank or whoever owns the home will not accept that price.
1 vote Thank Flag Link Wed Feb 18, 2009

In addition to the comments on short sales, please also be advised that internet technology and real estate is relatively new and evolving rapidly (changes, changes, changes). The problem I find as an agent is that price changes aren't always reaching the Trulias, Zillows, etc. in a timely fashion and, yes, this is a problem.

To avoid this problem in the future, it would recommend that once you spot a property on what I refer to as "alternative" websites, you then check it on Realtor .com (which is 99% accurate and gets their feeds directly from the "official" multiple listing systems) for confirm the accuracy.

Hope this helps!

Francesca Patrizio, Realtor Associate
Realmart Realty - An AFFORDABLE Way to Sell Your Home
Ranked #15 out of 436 Real Estate Brokers in Monmouth/Ocean County MLS in 2008
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Tue Feb 17, 2009
You are easily insulted for someone that posts an insulting question.

No one knows in the outset of a short sale what will work for the bank. The list price may of come from the seller or from comps in the area. If you make a 200k offer and the bank runs the numbers and says
275, 000. The agent should change the listing. But, for the most part, I have not seen this happen.

I would believe that you learned a lot if you were posting that you were happy about how you got a deal done.
0 votes Thank Flag Link Sat Feb 14, 2009
You may be interested in this house http://www.realtor.com/realestateandhomes-detail/112-Gibson-… asking only $299,000 for 3br 1ba with finished basement and big lot. Why?

most foreclosures or short sales are located either at not so popular township. Hey! Piscataway just ranked #23 of Top 100 Best Places to Live in America http://money.cnn.com/magazines/moneymag/bplive/2008/snapshot… by CNN Money Magazine. Or those properties may be at very bad shape since no one take care of it.

But this house is at good condition and it is estate sale. You got to ask your realtor to show you. Many ranch house like this also bought by builder to make it a 5br 3hba 2ga new house in the neighborhood.
0 votes Thank Flag Link Thu Feb 5, 2009

As a listing agent who has many short sales....the problem is that we don't know WHAT the bank will take. Sometimes they surprise us (in a good way). I will agree with you, though, that if a listing agent has already submitted a contract to the bank, and it has been turned down with a "minimum" acceptable price to the bank, then the listing agent absolutely should change the asking price. The problem with some agents out there is that they have only been selling for past few years...in a seller's market....basically "order takers" and have no clue what the difference is between a short sale and a REO property. Their brokers should be focusing office meetings on educating their agents about these types of sales. It is very frustrating trying to deal with an agent (even on my end) when they do not have a clue as to what they are doing.
0 votes Thank Flag Link Fri Jan 23, 2009
Hi Carol - As a follow up to my previous answer, to answer your question, once the bank has indicated that they wouldn't take a lower price under any circumstances, then I would think that the listing agent should change the price to reflect that, unless, for some reason, that agent has reason to believe that the bank would change their price later on. (And no, you're not crazy. I've seen what you've seen as well...)

As for the ethical implications, I'll let you draw your own conclusions.
0 votes Thank Flag Link Fri Jan 23, 2009
No John, I'm a bit insulted by your response.....it is not a Lis Pendens notice. I'm actually becoming quite knowledgeable about this stuff. Believe it or not sometimes I know more than the realtors I dealing with. The homes are indeed listed. I have a collection of them. Some of them don't even list the home as a short sale. I ask is this a short sale or REO? I have had realtors that don't know the difference . My point is if the listing agent has the knowledge of what the bank will accept on an offer, it is dishonest to list the property at 50 grand less to get people in and start a bidding war, which is probably their hope. It is frustrating and makes me very angry. I ask again shouldnt the listing read the banks asking price.
0 votes Thank Flag Link Fri Jan 23, 2009
Hi Carol:

When listing a short sale property, the Realtor will list the home at a price which will get the home sold. Unfortunately, the current mortgage or mortgages on the home may exceed current market value by tens of thousands of dollars. I have one now that owes almost $200,000 more than the home is currently worth. The banks tend to be on the greedy side and decide that the agent doesn't know what the home is worth, and tries to recoup more of the mortgage monies. They got themselves into this mess...and are perpetuating it by not working with the agents and the sellers to get the homes sold.
0 votes Thank Flag Link Fri Jan 23, 2009
I am not sure that what you are reading is correct. Maybe you are reading a "Lis Pendens" notice.. this happens on sites.. this is the amount owed to the bank.. and the listing by sites that have this information is misleading as these home may not even be listed. So, I think ( and I may be wrong) that you are reading the Lis Pendens notice and think the price is what is owed. There are fee's, taxes and any other liens open the property that have to be addressed.

Not a "bait and switch" as you wish to call it.

John Sacktig
Broker / Manager
Orange Key Realty
Office: 732-863-6969
Cell: 732-213-1409

0 votes Thank Flag Link Fri Jan 23, 2009
Hi Carol - I know this can be very frustrating as a home buyer. Its frustrating for us as Realtors as well! Quite often, what happens in a short sale is that when we list a property, the bank will offer no guidance in terms of price, but will simply say, "Bring us an offer." So, the agent prices the property and brings in an offer. Its at that point when you find out what the bank will take. Ridiculous, I know. Perhaps its this kind of thinking that got us into this mess...
0 votes Thank Flag Link Fri Jan 23, 2009
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