Jeff ... what a stunning idea! If the value is right and they really want the house, why not? If the difference is close and we're looking for a long term investment ... what's the heck does it matter is they pay a bit more and get the house into the "Regular" category? Great Idea! Nice Post!
Sometimes the difference between a regular sale price and a Short Sale price is less than $25,000.00 If you found a house that is perfect for your customer and their family but it's a short sale, have you ever asked the listing agent how much it would be as a regular sale? Most short sales should net the lender 80-90% of fair market value, depending on condition. Suppose a property is listed as a Short Sale for $195,000.00, but the loan payoff is only $202,000.00 and with estimated closing costs of around $18,000.00 for example, they could buy that house as a regular sale for $220,000.00. You already know the house is probably worth at least 10% above the Short Sale list price. So assuming you had an extra $15,000.00 in the bank, would it make sense to just offer $220,000.00 for the house and forget about waiting 2-6 months or more on a Short Sale approval that may never come?
This approach won't work in all cases, but I know of some Short Sales ( one that I am doing now) where the payoff is low enough that owner could forget about Short Selling, and just sell as a regular sale if the right buyer was willing to pay $22,000. over the Short Sale list price.
Everyone would benefit, seller, lender, agents, and even buyer would save months of waiting time and aggravation never knowing if they are even going to get the house at the short sale price. To me, the peace of mind of knowing I have a house under contract with a closing date set, where we can get moved in and get the kids in school, etc, would be worth paying $20,000.00 over the Short Sale list price!