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Can a short sale house go up in pricing?

The house was being offered at 176,590 and I offered 178,590 going above $2,000. The owner accepted my offer.  Now the bank counted/offer my offer to $190,000.  Can the price increase by $15,000????
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July 17 2012 - Tampa
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Best Answer
This happens frequently.  The seller's #1 goal in a short sale is to avoid foreclosure.  That often translates into a list price that is below market value, generating multiple offers, often over list price.  The ultimate sales price is determined by the bank(s), using recent nearby sold properties.  If the nearby sales support a higher price, the bank usually will counter at the higher amount.  I have seen short sales listed at $225,000 sell for $247,000 because of this exact thing.

Some buyers feel like it is bait and switch but the listing agent and the bank are two different entities with two different goals.  The listing agent wants to get offers and the bank wants to sell for fair market value.

I hope this answer helped you!
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July 17 2012
Profile picture for sunnyview
No. Banks don't talk to buyers directly. They use asset managers and/or agents to pass information. If you want to ballpark what an owner owes the bank, you can get a preliminary title report, but even that totaled amount is not a guarantee.
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January 10
Profile picture for abbyrosario83
Can the buyer contact the bank to get a accurate listing price?
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January 10
The fact of the matter is most do....unless they are priced "in step" with the evolving local real estate market lenders very frequently will negotiate a lower priced home (on not a reflection of the current market) upward to the present standards.

So as a buyer, focused on short sales, you should be asking your agent if the asking price is one that is accurate or if you can expect the lender to ask for more.

The absolute best "short sale" is one in which the lender has determined an acceptable price. This usually occurs because a buyer has made an offer and the lender has followed the process to the near end before something went wrong and the deal fell apart.

Hope this is helpful.

Bill
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March 27 2013
This happens all the time, especially in heated markets like in Arizona!
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March 27 2013
Yes this is common.  An agent will put a house on at a certain price, however the bank will approve a different price which a lot of times is higher.  I am a New Jersey Short sale realtor who comes across this a lot.  My site explains this situation.  Good luck
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July 20 2012
The reason that this will not generally happen is that the bank has no idea that the home owner has any intention of selling until they receive a copy of the purchase contract from the listing agent together with a "hardship package" that aims to tell the bank that they should agree to a short sale. Naturally, the bank wants to make sure that the home is sold as close to market value as possible, and so there is frequently a discrepancy between list price and the price the bank will accept, which is based on a formal valuation of some kind.

We are starting to see pre-approved short sales, where the bank and seller have reached an agreement on a short sale and the list price had been determined. This is rare though. One problem is that the bank does not even want to talk to the seller about a short sale unless there is an offer in place.
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July 19 2012
Profile picture for crivera1163
I'm so dissappointed how the short sale market works.  As Marjie mentioned, "buyers feel like it is bait and switch".  The seller agent and the bank should have some type of agreement in reference to asking price.  It's not fair to the buyer which has been pre-approved for the asking price and would need to verify if it can be approved for higher price.  Buyers shop according to pre approved amount or what they can afford. It's a waiste of time shopping for a home that would go over the budget.
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July 19 2012
Yes, The bank will make the final decision on what they will except.
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July 17 2012
Yes!  The Bank will pretty much decide on the Price...or ultimately what the want to net + extra.  Were the multiple offers?
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July 17 2012
Yes, and its typical in So Cal.
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July 17 2012

Unfortuantly,yes...... in a short sale the bank does have alot of the control.

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July 17 2012
Profile picture for sunnyview
Yes it happens often. Owners and their agents put short sales on the market without bank approval to get an offer on the table or to show that there is no buyer interest at a certain price.

Then the owner's agent submits the offer or listing to the bank, but the bank has the right to say no or agree to a higher price based on their comps.
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July 17 2012
On a short sale, the seller still owns the property, but any offers they accept are subject to third party approval (the Bank.) The seller cannot sell the property if the bank does not release the lien on the property.

If property was owned by the Bank, The you would have a contract with the Bank and then they would have to honor the price you agreed on.

We are starting to see more pre approved short sales. It is a big help but even they are not perfect. 

Best of luck with your purchase of your new home.
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July 17 2012

I have never had a bank try to adjust their price AFTER an accepted contract between bank and buyer....?
Or...did I misunderstand?
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July 17 2012
Yes, and once you accept, Bank can change their mind and ask for still more...

Eve
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July 17 2012
Yes, of course. The bank is simply stating the figure at which it will agree to a Short Sale. This is based on a vaulation carried out on their behalf (could be a BPO or an appraisal).If you don't like it, you can always issue a counter-offer which they may or may not accept.
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July 17 2012
Yes, the bank can increase the price.
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July 17 2012
Yes the bank is within it's rights to do that. When I write a short sale offer for a buyer, I require that I am the contact for the seller's lender's BPO agent. This allows me to meet the person who will determine the price that the lender will request for the property, I simply share comparable information with the appraiser doing the BPO, so the seller's lender doesn't get an inflated value that will not only make the current contract unlikely to go through, but also prevent the home from being sold before a foreclosure takes place.

Meeting the seller's lender's BPO agent is critical, because anything can happen and blow up your deal.
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July 17 2012
 
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