Short sale multi-part question:

First, thanks in advance to anyone who can offer me any insight, I appreciate it. If I understand correctly, I will have to put this home on the market first in order to obtain a listing agreement, one of the required documents - prior to submitting the “short sale package” to the lender, correct ?
My question is this: How do I determine what price to list the home on the market ? I believe I will need to put the home under option contract with the seller for less than the listed amount in order to have a spread where I will be able to profit. Furthermore, if I list the home with a realtor for a higher price, then have a lower price on the option contract - how does the bank view this ?
I am really trying to determine exactly how I can create a profit spread - what to option the property for vs. what to list the property for, and my assumption is that I want the bank discount and the BPO to be roughly the same amount as what I am optioning the home for.

Value Estimates
Range $133 - $158K
Zillow: $159K
Realquest: $144K
SiteXdata: $144K

The 3 most recent comps sold for $109K, $104K and $92K.

I’m not sure how it works in your area,
But I simply submit the short sale package with a cash offer included
and request a BPO.
I’ve been asked if the property is listed or if I have a listing agreement, I’ve always told them
I’m paying cash and the property is not or was listed but no longer is. Ive never had a problem once I’ve told them that. Good luck let us know how it goes