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Short Sale Listings

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Doug Wegener

Senior Member
Joined
Apr 14, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Anybody seeing anything like this?

I'm noticing in one neighborhood that Im doing that there are a couple of short sale listings that are 10% below any other listings, including most of the REO listings and sales. . When I look into them it turns out they are short sale listings that contain the comment " short sale and commision subject to lender approval".

While a listing may usually set a high end of possible value when compared to a similar property,
I'm not so sure here. It does not appear the lender has approved these below market listing prices or would accept the offers. What do you think?

Is this realtors pulling a fast one?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
The local Realtors are chatting about the lenders not wanting to pay the full commission depending on the offers coming in. The Realtors are pretty upset with the lenders about that. From what I've read on this issue the past couple of weeks, the listing contracts are about to be enforced and this is causing the upside down sellers some problems. Very well might end up in the courts.

I feel so sorry for these lenders having to pay Realtors commissions... NOT!
 

Blades

Sophomore Member
Joined
Nov 16, 2006
Professional Status
Real Estate Agent or Broker
State
Illinois
The agent and homeowner set the list price, not the lender. In my experience, the bank won't discuss much of anything until you have a contract(s). Typically the bank will take forever to respond, which drives away any buyers who do not want to wait months for a response. This is the reason you see the pricing lower than typical listings. Agents disclose the commission being subject to the banks approval because if the commission were lowered by the bank, the buyers agent could still demand the commission stated on the listing. I know a few listing agents who got screwed by the buyers agent due to not stating that the commission was subject to the banks approval.
 

realbiz

Junior Member
Joined
Mar 14, 2008
Professional Status
Certified General Appraiser
State
California
Anybody seeing anything like this?

I'm noticing in one neighborhood that Im doing that there are a couple of short sale listings that are 10% below any other listings, including most of the REO listings and sales. . When I look into them it turns out they are short sale listings that contain the comment " short sale and commision subject to lender approval".

While a listing may usually set a high end of possible value when compared to a similar property,
I'm not so sure here. It does not appear the lender has approved these below market listing prices or would accept the offers. What do you think?

Is this realtors pulling a fast one?

The commision part has been explained correctly several times above. However, what I am seeing in many communities in Southern California is the list price being way lower then all similar homes in the neighborhood (even foreclosures). In some cases these agents are trying to create a bidding war in some neighborhoods. Which I have seen some properties recently receive multiple offers. And in other cases they are just trying to get an offer to the bank to see what the bank will take. Now in some cases where the banks have not accepted these low offers, they do indicate to the agents what they will accept. That's why on some listings you are now seeing "Lender Approved for Short Sale".
 
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