How to set pre-foreclosure listing price?

[Thos. A.]

I'm a non-agent investor, my previous pre-FC short sales all were listed before or during the process, bu this one isn't. Bank (Wells Fargo) needs listing ag. as part of SS package. Debt is $255k, I'll offer half of that. Home still occupied, but owners as well as agent are cooperating well, Bank says they won't do a BPO till they get the offer, which includes MLS listing agreement.

Since it's pre-FC and not REO, bank doesn't have a price in mind from what I can tell. Agent wants to know what price it should be listed at...the debt? Something less? Agent's best guess after looking at comps? Obviously I don't want it too low, may attract distracting other offers. Is the important thing for the bank just to see that it's listed, or do they closely scrutinize the listing price for signs of irregularities?

[James Ward]

Thos,

You will run into problems if you keep looking at a Short Sale byway of Loan Balance. All Lenders look at the current value. You must make sure that you base all of your offers and all info that justifies those offers on the current value, or your perception of the value.

As for working with the Lenders, make sure that you are fully justifing your offers. Stand strong on your offers. And be prepared to walk away if needed.

As for the "listing" price. You will find many many different opinions on this. And most are successful with how they list and when. As a negotiator, I like the properties to be listed as soon as possible, if that is the way a Buyer will be found. As for the price, I like to draw attention immediately.

I hope this has helped.