A price cut and a short sale are not the same thing
The whole internet is talking about Florida sellers slashing prices. Almost everybody is missing the part that actually matters.
Here’s what’s making the rounds. Somebody posts a Southwest Florida townhouse that sold brand new for $304,000 back in 2023. It’s listed today for $195,000. That’s a hundred grand gone in three years. His numbers are his own, but they line up with what we already know: nearly half of Florida listings have taken a price cut, and about one in ten are selling for less than the owner paid. So yes, sellers are cutting. That part’s real. That’s from Real Estate News and the reporting on ATTOM’s data.
But listen, because this is where I can help and most people can’t. Cutting your price and doing a short sale are two totally different things.
If you drop your price and you still walk away owing nothing, that’s just a rough sale. You take less than you hoped and you move on. But if you owe more than that new, lower price will bring in, you can’t just cut it and sign. That’s a short sale. And a short sale only happens if your bank agrees to it in writing. There are already hundreds of homes on Zillow in Florida quietly marked “short sale, subject to lender approval.” A lot of them were bought at the top and are now listed below what’s owed.
Here’s why the difference isn’t just wording. When you owe more than the house will sell for, the bank is now a partner in the deal whether you like it or not. They have to approve the price. They have to sign off on the terms. Miss that step, or hand it to somebody who’s never done one, and the deal can fall apart at the closing table or your credit takes a hit it didn’t have to.
So if you bought in 2022 or 2023, and you’re looking at what your neighbors are selling for and doing the math in your head, hear me. Dropping your asking price does not make the loan go away. The bank still has to say yes. That’s a whole different process, and it’s worth understanding before you list, not after.
If you’re underwater and trying to figure out whether a price cut or a short sale is your move, you don’t have to sort it out in public. You can reach me directly at JimArmstrong904@gmail.com or (904) 671-4161. Straight answers, no pitch.
