Michigan Real Estate-Southeastern Region-Keller Williams

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Foreclosure Market Secrets

Diary of a Short Sale

With Short Sales becoming a household term these days, I thought that logging a short sale's happenings and events might help others decide if they have the stomach for it. 

I am working on 2 short sales right now, so I will call one of them "Madison" and the other "Independence".  

Madison was originally listed on 4/17/2008 for $48,900, which is under the sold values for the neighborhood.  My buyer and I saw the property on 8/27/2008, and wrote an offer on 8/31/2008.  There was already an offer accepted, and ours, plus 3 other offers would be kept as "back-up" offers.  This means that the bank was already working with another buyer's offer, and, no matter how high the other 3 offers were, they could not trump the one they were working with.  On September 15th, I recieved a call from the agent letting me know that the bank counteroffered that other buyer's offer at $2,000 higher than his offer price, which was for a cash, guaranteed sale.  The price that the bank countered with was $2,000 higher than the original list price of $48,900.  (Even though that buyer met their asking price with their offer, they decided that they wanted $2000 more than the listed price)  That buyer walked away from the negotiation table, and we were now in the running again.  The property was re-listed at $54,900, and they were taking offers for a week.

 Tune in later for the continuing saga...it's back to work I go! 

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