It is very frustrating to a realtor and a buyer when you have a customer who puts an offer in, we negotiate a price and then find out from the listing realtor, that the seller doesn't have enough funds to close, and she needs now to market it as a "short sale".

I had a customer and we made our offer, the realtor negotiates with the seller and negotiates down our commission so the seller can close. The realtor told me the seller needs asking price or above and I advised the listing realtor that she should have considered what an appraisal would come in at, and I did not think this would appraise at a higher price, and nor was my buyer going to pay a higher price. According to the listing realtor a day later after negotiation, she tells me that the seller had "forced insurance" and that gets tacked on to the end of the mortgage, and the seller no longer wanted a family member to make up the deficit, and told the realtor to "short sale" it. Needless to say, my customer walked away from the deal very upset, but I assured them we will find them something else.

Check with your realtor that a seller can close. Usually, when a realtor lists a property, she checks on the mortgage balance and advises the seller about appraisals and closing costs.

Have a great day and enjoy!