I received a phone call this morning from a successful Scottsdale AZ real estate agent that I want to share.
She had read my on-going series of short sale nightmares which are horror stories that buyers and sellers have experienced dealing with short sales and bank owned properties.
I have also been a loud voice and advocate calling for a ban on all short sales that are not actually approved short sales. She called to share a story that I will outline in her words.
“Greed is what created this mess and greed is continuing…….Common fellow agents…I am so frustrated by some agents who pursue short sale listings only to contribute to the short falls of the current market. I have even seen homes with a $1m balance being sold at $500K by some idiot who pull the number out of their ass….The bank never approved it …now they just created a false market price…you suck! you hurt many families along your greedy path—- you are contributing to the insanity. Stop listing the homes way below what the banks will even consider get a pre approved #. I consider these agents the bottom feeders of our industry. Complete trash!
I have to applaud this Scottsdale AZ real estate agent. Too many short sales are not short sales at all. I should qualify that by saying, they are an attempt to sell short by a seller with co-operation with an agent pending bank or lender approval they may never receive.
The problem is that these active listings are not offers to sell. Non-approved short sales are offers to solicit offers for the banks to decide if they will accept the offer. However, they are not basing the acceptance of an offer on the offer itself. The bank will weigh most heavily the financial wherewithal of the current owner. That will include a short sale package, hardship letter and a variety of other criteria.
The complaint many agents have is that it is affecting the market. In the example above a listing is priced at $500K in a neighborhood of million dollar homes. The short sale has no chance of approval. However, now potential buyers of homes in DC Ranch are convinced that other accurately priced listings are overpriced. Sellers cannot sell. Buyers will not buy or only put in offers on a home they cannot ever be accepted.
I hope you see the problem. Do not waste your time with Scottsdale AZ short sales or Phoenix AZ short sales that are not approved. There are too many other bank owned homes and short sales that are approved and you can negotiate directly with the bank.
Do not contribute to the problem. If you are an agent, do not list homes that cannot be sold. If you are a buyer, work with a Scottsdale real estate agent that has experience with Phoenix short sales and Scottsdale bank owned properties and can point you towards deals that an actually close escrow.