Who prices a short sale listing?
Your Short Sale REALTOR
Will the bank give a listing price?
Nope. 95% of the time, the bank request we submit an offer. Very very rarely, we encounter a pre-approved list price through a seller who has an FHA loan or sometimes through Bank of America's short sale cooperative program. However, even then it's dicey to say the least.
Making it as difficult as possible to price, sell, get short sale bank approved, then buyer's bank approval of price for closing, there are several prices that seem to always come up:
- Property Appraiser's Market Value: I've found these numbers to be very high and very low. However, they do have an algorithm producing this market value.
- Zillow: Ahh Zillow, the beast. Never accurate, but amusing non the less.
- Seller's opinion of value: Always higher than true market value. Hey, I do it too!
- Realtor's List Price: Usually dead on or just a hair above or below true market value.
- Buyer's opinion of value: Always lower than list price regardless of list price accuracy.
- Contracted price: The exact true market value for that day.
- Short Sale Bank's Valuation: Usually well over the contracted price and hinged on a really crappy system of the "BPO", Broker Price Opinion.
- Buyer's Bank's Appraisal: The first actual certified appraisal in this entire process. (Shouldn't we be getting these MUCH sooner in the process? Try getting your bank to order one without a short sale bank approval in hand!)
- Closed Purchase Price: A meeting of the minds on what is the actual agreed upon value for that house, that month, in that condition.
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Listing information last updated on December 13th, 2019 at 2:53am EST.