Sometimes it doesn't...especially if there is a saturated market. But seeing the homes that are selling at $200k? Price yours at $195k, see what happens. A lot of people avoid short sales because of the potential amount of time that is needed to complete them. If the home is priced at what the 'regular' sale homes are, it's going to take longer to sell unless the home is THE home for someone.
I wouldn't let a property sit on the MLS for more than a weekend without a price drop if there are no showings. Get the place on the MLS on a monday or tuesday (when most people do their searching to make appointments for the weekend). If you are between 2 price breaks (most people will "cap" their homes at prices that have 5 and 0 --for instance, list the home at $175k, don't price your home at $176k or $201k. Do $175k or $200k or $205k). And, again, do not leave the property untouched for more than a weekend. If you didn't get any showings immediately, drop the price (doesn't even need to be a big drop...a $1,500 drop can sometimes bring in multiples offers.
If you get showings, but no offers, drop the price slightly..sometimes all it takes is the difference of $1k - $2k to push that "interested" party to become a "purchaser".
Agreed, that is simple real estate and being done. but afraid to go too low below market.
In yoyur experience how much below market have you seen the bank accept?
It's really all over the board and I couldn't even begin to answer that question honestly. I've seen banks approve short sales on homes that were sold for $80,000 below market value...I've seen others demand that someone pay their valuation that is way too high. It all depends on the end investor. Does the investor want to get out from under the home? If so, they may be more willing to let it go for 20% below market. There is really no way to know until you dive in and go at it.
Is amazing, how you ask for a simple answer, and some agents respond like a politician, with no answer at all.
Getting back to your questions, I just had the same issue with a S.S. that I just close, Citi negotiators like to play hard ball, put the pressure on the 2nd, if no are not getting no where with the negotiator ask to speak with a supervisor. Go back to the 1st lender and ask if they can offer little more to the 2nd. The next option is to offer the 2nd to carry a note for the difference.
I have a tough situation.The first lien holder is Wachovia. Wachovia is giving $5000.00 incentive to seller . The 2nd lien holder is Chase. The seller filed bankruptcy in 2007 so the file has transferred to Chase bankruptcy department and is currently handling by a law firm. When I talk to the law firm who is handling seller's file told me Chase is not allow any money to seller otherwise Chase will deny the short sale. Any suggestion how shall I do the HUD so the $5000.00 can give to the seller not back to Wachovia?