Do I have to offer full price on a short sale?

No, you don’t have to offer full price on a short sale. Normally an offer is made and the seller can accept it, reject it or counter it, just like any other real estate offer. With a short sale, the seller has to send your accepted offer to their lender for approval, before moving forward to close. The bank then has the option to accept that price, reject it or counter it. Once the bank agrees on the terms, the closing can happen. From time to time a bank will agree on a price in advance. You might see something advertised like; bank approved short sale at $575K. In this case, you shouldn’t offer less than that or it is a waste of time.