Short Sale Property What should be my first offer?

[Amy Xu]

There is a property for short sale that I am eyeing. It's going for 135K. My agent pulled comps at 218-231K. I can offer cash. Should I just offer full listing price? My agent says typically short sales will only accept offers close to or at list price. 

[David Faulkner]

If the asking price of 135k is not bank approved, then it is meaningless. The seller could list the property for $1, subject to bank approval, and it would carry just as much weight. Even if the seller accepted an offer of 135k, the bank would still need to approve it ... so, if you want to play that game and the ask price works for you, then tie the property up at 135k and wait for the bank to counter with what they would actually accept, which is likely closer to retail comps ... put in your offer expecting this to happen, and it may takes months before they get back to you and it could be at a crazy high price so don't stop your search in the meantime, at that point your offer will have expired so you could accept their price, continue to negotiate with the bank, or walk away. If 135k is already bank approved, then it is a different story ...