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Answers (9)
- John Armstrong, "JohnArmstrongTeam"
- Contributions:265
It seems like they do. That would be a smart strategy. I'm not willing to give them that much credit though.
- kayakerdave
- Contributions:4
Very simply - Yes, Banks do put a low ball price on homes to get multiple offers and then pick and choose and wait.
- Ken Lowe, "NAPLESREALTY"
- Contributions:122
REO property listing price depends on the bank and the market. I perform Broker Price Opinions for banks and they always ask for a 30 day sales value which is below market. Some banks price the property low and take bids for a time period and some price at market and lower if not sold.
I recommend using a local Realtor to help establish values and bid based on comparables not list price. As REO and short sale properties have put downward price pressure on markets, often the best buys are traditional sales from sellers that need to sell or understand that is they sell at current prices to buy a move up house at current prices they will be increasing future equity when markets rebound.
I recommend using a local Realtor to help establish values and bid based on comparables not list price. As REO and short sale properties have put downward price pressure on markets, often the best buys are traditional sales from sellers that need to sell or understand that is they sell at current prices to buy a move up house at current prices they will be increasing future equity when markets rebound.
- Susan J Penn, PA,SFR,CDPE, "Susan J. Penn PA"
- Contributions:101
The lenders intension is to sell a home quickly. With the markets inventory so low, we are seeing this multiple offer senario. Being on a foreclosure team, we find it amazing to see 25 offers on one piece of property.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Yes. I have wintessed many banks price low and let the market carry the price up. Buyers often get caught up in bidding and will pay more than if the house had been priced at a fair sale price to begin with. Matthew is right, often this drives the sales price above appraisal.
- Linda Strasberg, "L Strasberg"
- Contributions:2315
the bpo determines the price...the bpo is not the listed price...the object of the listing agent is to get the highest dollar amount for the property so they will get more listings from the bank...their livelihood is not determined by one transaction...but many transactions
Multiple offers must be taken in various options CASH, CONV, VA, FHA
Investor/Owner Occupied...the bank decides what type of owner they will accept based on how many are already in that particular neighborhood. It's a science as well as an art.
Multiple offers must be taken in various options CASH, CONV, VA, FHA
Investor/Owner Occupied...the bank decides what type of owner they will accept based on how many are already in that particular neighborhood. It's a science as well as an art.
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
There are a lot of factors that go into the pricing on a home - appraisal, location, condition, demand, etc. The best thing to do is to find an agent who is familiar with the foreclosures in your area, the average days on market, and the resale value at this time. Also, I've been told that some banks/gov't entities don't lower their price and don't negotiate very much the first 30 days. That is probably area specific but something to keep in mind nonetheless. I've seen foreclosures sit on the market for months b/c the list price was too high and in the end, they end up taking thousands of dollars less than the first offer. Sometimes they aren't very good at their own game!
- Sanna K Thomas PA, "Sanna K Thomas PA"
- Contributions:756
The bank will base it's asking price on the BPO from the listing agent.Although it seems as if homes are not moving, homes in the 1st time buyer price range are in very tight competition with the investors. Investors can offer cash and close quickly without requiring an appraisal. I have had several 1st timer's loose the offer to a quick cash close.
So the market is moving and moving well in my area. The bank obviously would like highest and best, but days on market can mean money lost. If prices are declining, then what they can get today they may not obtain tomorrow. They also have the overhead on these homes which effects their bottom line. With the flood of inventory they are best to move them rather than wait for a few dollars more. Time is money in this market.
So the market is moving and moving well in my area. The bank obviously would like highest and best, but days on market can mean money lost. If prices are declining, then what they can get today they may not obtain tomorrow. They also have the overhead on these homes which effects their bottom line. With the flood of inventory they are best to move them rather than wait for a few dollars more. Time is money in this market.
- Matthew Ryan, "matthewryanre"
- Contributions:51
Banks/Realtors listing foreclosed properties for sale at a price that will attract multiple bids may be a function of changes in the market occurring after the BPO(brokers price opinion) has been established. I have had a few clients that have been frustrated with bank owned(foreclosed) properties. The offers being made on these properties are often for more than the properties will appraise for. The last offer I put on a property was accepted by the bank with one condition, that we remove the appraisal contingency. The lender of course advised against accepting the offer. I of course had to agree with the lender. If this is a trend with bank owned properties then I'm afraid that only persons offerring all cash will be able to purchase these homes. So, in answer to your question, yes, but it may not be on purpose. Demand for these properties is high, inventory is low, driving offer prices higher. This makes it very difficult to price a property correctly.
Do banks low ball listing prices on foreclosures to attract multiple bids & higher prices?
I just thought that when you see a listing for a foreclosed property, the listing price is the what the bank is willing to take. Do the banks ever list the properties low to draw in attention and possibly receive an higher price? I didn't think that was the case with foreclosures, I may be wrong. Anybody know??
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