Didn't really see a question there, so I think Nvrealtor is just looking for some thoughts and feedback so here are my two cents...

Good answer Dave. We are seeing the same thing in my area - that pricing strategy has changed to the extent that banks are starting prices very low to attract multiple offers which will hopefully a) drive the bidding up a little and b) give them a better chance of getting a qualified buyer or pool of qualified buyers to choose from and hopefully get the home off of their hands.

Because of the moratorium on foreclosures that was in place from late last year to I believe April of this year it has given lenders an opportunity to step back and develop a game plan for clearing inventory and cutting into some of the backlog. It seems to be working and my guess is that now the moratorium on forclosures has been lifted we are going to see another wave of foreclosures hit the market within the next 6 months.

So in other words I don't think this strategy is going to change any time soon. Be prepared to deal with it for the forseeable future. The silver lining in things is that these homes are selling and only after inventory is reduced will it give the old law of supply and demand a chance to kick in and start to generate some appreciation. Of course that doesn't make your job any easier, but the more you know about the market and buyer and seller motivations the better job you can do of relating it to your clients and advising them properly.

Good luck!

NVrealtor,
The agent has no control over pricing this is dictated by the bank or asset company. This will be the reality for a while, hang in there. They will price them lower to create a multiple offer scenario and often will sale it well over the list price.