I had this email conversation with a short-sale realtor who had listed a property for at least 10% under value last month, and marked it contingent immediately:
JtR: I’m curious about the price. With the reaction (she said she received a “bazillion” offers), it is obviously under value, and there are comps 10% higher. Why don’t you try to sell these for market value?
SSS: The short sale lender established the price – I am mandated by their program to advertise it, list it, amend my listing contract, etc at their approved list price, which is reflected as such. It is what it is – I am not doing anything I am not instructed to do by the powers that be….and who pays the agents’ commissions!
There is no reason to sell a property for more than a short sale lender requires unless the seller has tax implications – which they don’t. I am actually netting the lender $30,000 MORE than their required net proceeds believe it or not….So, the buyer gets a great deal – one of the few left out there…
JtR: No reasons? How about these:
1. The bank deserves full disclosure that their valuation is too low, and proper open bidding would attain a market-value sale. Don’t the investors deserve the truth?
2. The neighbors deserve a realistic comp.
3. Other buyers deserve a shot to compete.
I’m not blaming you personally, it is the system that is flawed. I’d love to see a short-sale agent address these reasons.
SSS: At the time the appraisal was completed, (months ago) – this was the fair market value of the property (maybe $20,000 low). There was no “full disclosure” needed – there was a full appraisal completed – not just a BPO. It’s not secret that the market has skyrocketed – but we had an open escrow and a legally binding contract when they issued their price.
The sellers chose the offer – not me.
I am not going to debate this with you to be honest; I don’t need to. I was instructed to do something by the two parties in charge – the short sale lender and the seller. And I did my job.
Have a good week…..
I dropped it after that, but the next question would have been – Did you disclose to the lender that you found a buyer, created a legally-binding contract, and opened escrow prior to putting the property on the MLS?
Does this mean the LA sold it to his or her own investor?
Probably, but is strange is that some of these short-sale specialists will have a different agent represent the buyer.
You would think that as long as the listing agent is gaming the system, they would take both commissions.
But if the seller has a preferred buyer (friend or family member) who has their own agent, it’s possible that the LA didn’t sell it to their own investor.
sounds like she is a pro based on her carefully worded responses.
I should clarify, I meant she is a pro at gaming the system.
😆
People don’t care about investors…they don’t see the investors as their parent’s life savings.
another crook trying to justify their behavior.
I have found that someone says they “won’t debate further”, it often means they can’t defend their position.