What will these short sale artists try next? Will they ever pause to ask "How does my action affect my industry?" Or, "Geez, what will the innocent buyers think?" I doubt it.
I have an anxious First Time HomeBuyer family of 4 whose apartment lease expires in 60-days. They are buying in the lower end of our metro price range: $180,000-$200,000 3BR/2BA townhouses. Reasonable. We've been into a ton of apparently abandoned properties, AKA foreclosures that the bank hasn't even bothered to run a vacuum before putting on the market.
They've written a couple of contracts, but have lost to multiple offer situations. That's good/bad: Good because they know they are picking excellent opportunities; Bad because they haven't won although they've bid the maximum they can muster. Still plugging away every day using every online tool available, including several of mine.
Today, they sense great opportunity, again: "Hey, Curt, we found a GREAT property, please check it out. We'll tour it immediately." Upon MLS lookup, I agree: Fantastic house for the money. A little out-of-town, but a great buy. Aha, maybe too good of a deal, heh? Y'all know the saying...
Sure enough, a "potential short sale", but "Pre-Listing Appraisal $355,000 & Home Inspection Report Available For Review." WOW!!!!
I should be comforted by the phrase: "Will Be Facilitated By Certified Distressed Property Experts (CDPE). You Can Have Confidence That You Have Selected A Home Marketed By A Broker With Previous Experience & Expertise In The Short Sale Process." (Always be suspect of people who capitalize every word!!!)
OK, quick check of MLS changes. WOW again. Follow this sequence:
- 19Aug-$325k (OK, need to be aggressive)
- 26Aug-$305k (now I'm suspicious)
- and 3Sep(today) at $205,000 (my client max price, period).
Obviously, the bank will NEVER approve a short sale below $300k, yet the wonderful CDPE is out there advertising it for $205k. S/he can say "Hey, look at all the showings/offers/whatever." The rest of the world? Too bad.
NOT NICE, as I imagine the tear trickling out of my buyers eye....but instead, my buyer reacts to the bad news with a cheery "that's ok... That's what we have you for."
I want to strangle someone. You call this Ethical? You call yourself a REALTOR?