Too Good to be True | The Short Sale Teaser

Have you come across a property that the price seems too good to be true? Well, the truth is if it’s a ’short-sale’ then it probably is.

When properties are listing as a short-sale the listed price is usually a teaser to get a buyer to make an offer on the property. In order to get the bank to approve a short-sale the seller must first provide an offer on the property. After an offer has been made, the bank will assign a broker to do a BPO (broker price opinion) to determine the value of the property. Then, the bank will consult with the seller and the seller’s agent on what net proceeds the bank is willing to take on the property.

Have I lost you yet? The bottom line is that the initial price set on a property is not a reflection of what bank will sell the property for. First, and most importantly, an offer has to be made on the property…. hence a teaser price that is too good to be true!

I admit, I do teaser prices for my seller’s properties that are going through preforeclosure. Why wouldn’t I?.. they are in the best interest of my client and it is the most effective way to get the property sold fast with the least impact on the seller’s credit. I am honest with buyers that the price is subject to bank approval and can (or will) take 45-90 days to process.

Have questions about short-sales?… here is the wiki on short-sales, or feel welcome to leave a comment below.