I had several properties I missed out on, in that when it came on the market it quickly went into contract and I was too late.
Typically I try to do my research, look at comps and many other variables, sometimes had to go to the city to look into open permits etc...before I write up an offer and it's always a serious offer. Meanwhile there are a lot of other investors like to toss out low balls site unseen but they are also the first one to back out.
Now I see a few of those properties are being relisted as the bank countered a price and they couldn't work out a deal. Since the bank countered the agent would then adjust the listing price to the countered price and market it as an "approved" short sale.
My question is, is this price typically fixed? Is it possible to still strike a deal below that number? The listing agents I asked seem to think those are not negotiable and represent the bank's minimum net.
Is that always the case?
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I clue buyers into the fact that the approval means the lender has accepted the sellers hardship so the short sale should not be denied for that reason and that any new contract will put the file back into the lenders system but they can still expect that the approval process will be anywhere from 45 days & up. An offer needs to be based on market values for similar properties, not on a ball park low ball "hope I get it" strategy. Never know what the old or new negotiator is going to order, change or reject and why waste buyer, seller, mine and negotiators time with offers that make no sense when we have plenty of buyers willing/able to make good and logical offers on properties.
Interesting how different List Agents use this info from the bank. No, it is not "approved." It was probably the countered or approved price for the Buyer that walked, but that doesn't mean it will be for your offer. I use that number for the new List Price, but I never put "approved" by it. That is misleading. We do not know what the next negotiator will get approved. Use that "approved" number as a very good clue as to where they are with numbers at that time. If it's listed as a COOP Short Sale, then the number most likely IS approved..otherwise, use the number as a strong clue when writing your offer.
Kimberly... that answer is SPOT on! No, it is not approved and should not be marketed as so. It is a good rule of thumb, but DOM changes, negotiators change, Buyers change, prices change.
going in the newsletter
Jack - The list agent may have built in buffer room, too, when re-listing it. Also, bank's valuations expire every 60-120 days, so the old value is meaningless after a period of time (discount VA Compromise or FHA/HUD pre-foreclosure).
Hi Jack. The approved price can go down BUT it is ussually a fixed price that the lender will adjust downward every 21-30 days. So the price shown in the MLS is a minimum price needed to do the deal.