It is now 2020. In fact, we are in the first whole work week in January and there is a listing that has popped onto the market for sale.

The agent is out of the area.

The listing is over 3100 square feet, single-family home with a three-car garage in the Santa Clarita city of Saugus.

WHATTTT? Listing price - $380,000

A four-bedroom and three-bathroom home in Saugus with a three-car garage and an unspecified lot size - priced at $380,000.00. I'll buy that all day long.

How can this be? 

The listing agent did not put the legalese in the MLS commentary, but typically on a short sale listing, we write in the confidential remarks that the sales price, terms, and everything is subject to the lender's approval.

Under market value short sale listing in Saugus CAIt's a short sale listing, aka a short pay if you had one listed before 2007.

The word short sale is what it is. The owner is wanting to sell it for less than they owe to the bank.

They want to sell it for less than what they financed it for.

Those owners are going to need the "mortgage" holders' approval.

There could be an investment firm or a hedge fund that owns the note on the home. Then all of those decision-makers are going to have to give the seller their blessing in order to sell this short sale and at what terms and price.

It's not a short process to be sure.

Also, the listing price is not the price the home is actually going to sell for.

In the case of a home that is listed as a short sale, the "note owners" aka "mortgage holders" the lender that has lent the money on the home to the homeowner, they are going to want verification of value.

They are not about to lose 1/2 of the potential value the home has just because it's being sold as a short sale.

There is going to be an appraiser dispatched at some point to ascertain the fair market value of this home by the short sale approval entity.

In the least, there is going to someone that is going to be dispatched by the mortgage holder that will conduct a BPO, Broker Price Opinion on this specific home.

Both "estimators of value" will gather the most recent sold homes in the past 180 days within 1/2 mile of the subject property. They will then look to the exact bedroom and bathroom matches. They will then continue to whittle away until they find a few sold homes that are very similar to the subject property. Those sold homes need to be close and they need to be recent sales.

When they see comparable sold property numbers in the $600 thousand dollar range versus the listing price, flags are going to be thrown by all the concerned referees.

If you are the buyer of a short sale know this. They take time.

They are all subject to the lender's approval. Not your lender for your loan, but the lender that owns the note on the property.

There may be multiple contracts that have been written on the short sale home.

The bank is only going to "officially" accept one. The owner may hold onto many.

There is also a bunch of paperwork that the homeowner has to fill out and produce showing their justification to have the property approved to be sold short in the first place.

Most financial institutions require an offer to start the process and most any offer will do.

The buyer just needs to know the home is not going to be sold to them at 1/2 market value. 

The bank, if they approve, will come back to the home buyer with a counteroffer at a market value price.

It is at that point, albeit a few months later, that the short sale has been "approved".

I'm Connor with Honor and I am glad to be of service to you and yours with regard to all things which are real estate.

I have already gotten a ton of phone calls this AM for a short sale listing that had been placed onto the market at way under FMV - Fair market value.

When you are ready I can save you a ton of time and money. Let's meet at my offices so I can give you my 1-hour home buyer prep appointment.

As stated, it will save you when wanting to buy Santa Clarita real estate.