The new flipping: short sales

[SD Squatter]

[quote=sdrealtor]Sd Squater
That would actually be counterproductive and not what someone would do in a short sale flip. In a short sale flip, an investor offers to pay cash in a below market transaction without it actually going on the market. The investor then puts it on the market as a free and clear property. Its never marketed as a short sale.[/quote]

Hmm, isn’t the realtor representing the bank under an obligation to put a property on the market and get the highest price possible? If he/she puts the property “on ice” in order to get an artificially low price from the bank through a scheme like this then everything appears legit from the outside. Not listing a property at all would seem like a breach of contract by the realtor.

[SD Squatter]

[quote=urbanrealtor][quote=SD Squatter]I wonder how widespread this sham is in San Diego area. It seems that quite a few listings appear to be placed “on ice”, typically listed as “not accepting any more offers at this time”or “pending” and that on the first day a property is listed. And then there are these “mailbox full” answering machines…[/quote]

My short sale listings generally go contingent or pending the first day.

That cuz they are cheap and get lots of offers.

I try (but fail) to return all my calls on these.[/quote]

Don’t you think that listing prices are a little low then? Is the goal here to get a bidding war going and close on the first day? I’m just missing the logic here…, why the rush?

[SD Squatter]

[quote=urbanrealtor][quote=SD Squatter]I wonder how widespread this sham is in San Diego area. It seems that quite a few listings appear to be placed “on ice”, typically listed as “not accepting any more offers at this time”or “pending” and that on the first day a property is listed. And then there are these “mailbox full” answering machines…[/quote]

My short sale listings generally go contingent or pending the first day.

That cuz they are cheap and get lots of offers.

I try (but fail) to return all my calls on these.[/quote]

Don’t you think that listing prices are a little low then? Is the goal here to get a bidding war going and close on the first day? I’m just missing the logic here…, why the rush?

[SD Squatter]

[quote=urbanrealtor][quote=SD Squatter]I wonder how widespread this sham is in San Diego area. It seems that quite a few listings appear to be placed “on ice”, typically listed as “not accepting any more offers at this time”or “pending” and that on the first day a property is listed. And then there are these “mailbox full” answering machines…[/quote]

My short sale listings generally go contingent or pending the first day.

That cuz they are cheap and get lots of offers.

I try (but fail) to return all my calls on these.[/quote]

Don’t you think that listing prices are a little low then? Is the goal here to get a bidding war going and close on the first day? I’m just missing the logic here…, why the rush?

[SD Squatter]

[quote=urbanrealtor][quote=SD Squatter]I wonder how widespread this sham is in San Diego area. It seems that quite a few listings appear to be placed “on ice”, typically listed as “not accepting any more offers at this time”or “pending” and that on the first day a property is listed. And then there are these “mailbox full” answering machines…[/quote]

My short sale listings generally go contingent or pending the first day.

That cuz they are cheap and get lots of offers.

I try (but fail) to return all my calls on these.[/quote]

Don’t you think that listing prices are a little low then? Is the goal here to get a bidding war going and close on the first day? I’m just missing the logic here…, why the rush?

[SD Squatter]

[quote=urbanrealtor][quote=SD Squatter]I wonder how widespread this sham is in San Diego area. It seems that quite a few listings appear to be placed “on ice”, typically listed as “not accepting any more offers at this time”or “pending” and that on the first day a property is listed. And then there are these “mailbox full” answering machines…[/quote]

My short sale listings generally go contingent or pending the first day.

That cuz they are cheap and get lots of offers.

I try (but fail) to return all my calls on these.[/quote]

Don’t you think that listing prices are a little low then? Is the goal here to get a bidding war going and close on the first day? I’m just missing the logic here…, why the rush?

[urbanrealtor]

[quote=SD Squatter]

Don’t you think that listing prices are a little low then? [/quote]
Possibly.
Short sales are by definition less desirable in non-price terms.
It is generally necessary to lower the price to create interest.
[quote=SD Squatter]Is the goal here to get a bidding war going and close on the first day? [/quote]
That would be great but is, for the most part, impossible.
The bank needs to approve the purchase and usually takes months to do that.
Therefore opening escrow (let alone closing escrow) is usually months away.
[quote=SD Squatter]I’m just missing the logic here…, why the rush?[/quote]
It is important to get offers quickly because, as the agent (or short sale consultant), you need a buyer with an offer to even begin working the deal with the bank to get an approval and open escrow.

The concept of rushing just does not enter into it.

The irony is that these take months and are called “short” sales.

[urbanrealtor]

[quote=SD Squatter]

Don’t you think that listing prices are a little low then? [/quote]
Possibly.
Short sales are by definition less desirable in non-price terms.
It is generally necessary to lower the price to create interest.
[quote=SD Squatter]Is the goal here to get a bidding war going and close on the first day? [/quote]
That would be great but is, for the most part, impossible.
The bank needs to approve the purchase and usually takes months to do that.
Therefore opening escrow (let alone closing escrow) is usually months away.
[quote=SD Squatter]I’m just missing the logic here…, why the rush?[/quote]
It is important to get offers quickly because, as the agent (or short sale consultant), you need a buyer with an offer to even begin working the deal with the bank to get an approval and open escrow.

The concept of rushing just does not enter into it.

The irony is that these take months and are called “short” sales.

[urbanrealtor]

[quote=SD Squatter]

Don’t you think that listing prices are a little low then? [/quote]
Possibly.
Short sales are by definition less desirable in non-price terms.
It is generally necessary to lower the price to create interest.
[quote=SD Squatter]Is the goal here to get a bidding war going and close on the first day? [/quote]
That would be great but is, for the most part, impossible.
The bank needs to approve the purchase and usually takes months to do that.
Therefore opening escrow (let alone closing escrow) is usually months away.
[quote=SD Squatter]I’m just missing the logic here…, why the rush?[/quote]
It is important to get offers quickly because, as the agent (or short sale consultant), you need a buyer with an offer to even begin working the deal with the bank to get an approval and open escrow.

The concept of rushing just does not enter into it.

The irony is that these take months and are called “short” sales.

[urbanrealtor]

[quote=SD Squatter]

Don’t you think that listing prices are a little low then? [/quote]
Possibly.
Short sales are by definition less desirable in non-price terms.
It is generally necessary to lower the price to create interest.
[quote=SD Squatter]Is the goal here to get a bidding war going and close on the first day? [/quote]
That would be great but is, for the most part, impossible.
The bank needs to approve the purchase and usually takes months to do that.
Therefore opening escrow (let alone closing escrow) is usually months away.
[quote=SD Squatter]I’m just missing the logic here…, why the rush?[/quote]
It is important to get offers quickly because, as the agent (or short sale consultant), you need a buyer with an offer to even begin working the deal with the bank to get an approval and open escrow.

The concept of rushing just does not enter into it.

The irony is that these take months and are called “short” sales.

[urbanrealtor]

[quote=SD Squatter]

Don’t you think that listing prices are a little low then? [/quote]
Possibly.
Short sales are by definition less desirable in non-price terms.
It is generally necessary to lower the price to create interest.
[quote=SD Squatter]Is the goal here to get a bidding war going and close on the first day? [/quote]
That would be great but is, for the most part, impossible.
The bank needs to approve the purchase and usually takes months to do that.
Therefore opening escrow (let alone closing escrow) is usually months away.
[quote=SD Squatter]I’m just missing the logic here…, why the rush?[/quote]
It is important to get offers quickly because, as the agent (or short sale consultant), you need a buyer with an offer to even begin working the deal with the bank to get an approval and open escrow.

The concept of rushing just does not enter into it.

The irony is that these take months and are called “short” sales.

[urbanrealtor]

[quote=SD Squatter][quote=sdrealtor]Sd Squater
That would actually be counterproductive and not what someone would do in a short sale flip. In a short sale flip, an investor offers to pay cash in a below market transaction without it actually going on the market. The investor then puts it on the market as a free and clear property. Its never marketed as a short sale.[/quote]

Hmm, isn’t the realtor representing the bank under an obligation to put a property on the market and get the highest price possible? If he/she puts the property “on ice” in order to get an artificially low price from the bank through a scheme like this then everything appears legit from the outside. Not listing a property at all would seem like a breach of contract by the realtor.[/quote]

Okay.
The agent in a short sale listing is not representing the bank.
He is representing the seller (the fucked over dude who bought it a few years ago) or the buyer.

The agent has no contract with the bank.
He does not (and should not) give a shit about anyone but his client (the buyer or seller).

[urbanrealtor]

[quote=SD Squatter][quote=sdrealtor]Sd Squater
That would actually be counterproductive and not what someone would do in a short sale flip. In a short sale flip, an investor offers to pay cash in a below market transaction without it actually going on the market. The investor then puts it on the market as a free and clear property. Its never marketed as a short sale.[/quote]

Hmm, isn’t the realtor representing the bank under an obligation to put a property on the market and get the highest price possible? If he/she puts the property “on ice” in order to get an artificially low price from the bank through a scheme like this then everything appears legit from the outside. Not listing a property at all would seem like a breach of contract by the realtor.[/quote]

Okay.
The agent in a short sale listing is not representing the bank.
He is representing the seller (the fucked over dude who bought it a few years ago) or the buyer.

The agent has no contract with the bank.
He does not (and should not) give a shit about anyone but his client (the buyer or seller).

[urbanrealtor]

[quote=SD Squatter][quote=sdrealtor]Sd Squater
That would actually be counterproductive and not what someone would do in a short sale flip. In a short sale flip, an investor offers to pay cash in a below market transaction without it actually going on the market. The investor then puts it on the market as a free and clear property. Its never marketed as a short sale.[/quote]

Hmm, isn’t the realtor representing the bank under an obligation to put a property on the market and get the highest price possible? If he/she puts the property “on ice” in order to get an artificially low price from the bank through a scheme like this then everything appears legit from the outside. Not listing a property at all would seem like a breach of contract by the realtor.[/quote]

Okay.
The agent in a short sale listing is not representing the bank.
He is representing the seller (the fucked over dude who bought it a few years ago) or the buyer.

The agent has no contract with the bank.
He does not (and should not) give a shit about anyone but his client (the buyer or seller).

[urbanrealtor]

[quote=SD Squatter][quote=sdrealtor]Sd Squater
That would actually be counterproductive and not what someone would do in a short sale flip. In a short sale flip, an investor offers to pay cash in a below market transaction without it actually going on the market. The investor then puts it on the market as a free and clear property. Its never marketed as a short sale.[/quote]

Hmm, isn’t the realtor representing the bank under an obligation to put a property on the market and get the highest price possible? If he/she puts the property “on ice” in order to get an artificially low price from the bank through a scheme like this then everything appears legit from the outside. Not listing a property at all would seem like a breach of contract by the realtor.[/quote]

Okay.
The agent in a short sale listing is not representing the bank.
He is representing the seller (the fucked over dude who bought it a few years ago) or the buyer.

The agent has no contract with the bank.
He does not (and should not) give a shit about anyone but his client (the buyer or seller).

[Author]

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