Why would a seller care?

[Joey Smajd]

Why would a seller care about the amount offered on a property if the property has to go to short sale anyways?

Example:
Listing price $120
Buyer's initial Offer: $95
Seller's counter: $115 (short sale)
Buyer's counter: $105

But why does the seller care whether the buyer's offer is 90K or 115K if the property has to go to short sale at anything under 120K?

[J Scott]

A few potential reasons:

1. It's possible the seller won't be able to negotiate away the deficiency, in which case, every penny matters to the seller;

2. It's possible that the seller will need to pay taxes on the deficiency (if not an owner occupant), in which case, every penny matters to the seller;

3. The seller really wants to sell, and knows that the higher the contract price, the more likely the bank is to approve the deal;

4. The seller is emotionally attached to the property, and isn't thinking rationally.