Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
There is a lot of inaccurate information out there, this is why it's a good idea to work with an experienced realtor who can show you real listings with accurate information. If it looks too good to be true, it probably is! A lot of these are foreclosures, short sales, and distressed properties that are either incorrectly listed or there is a back story! If you need any assistance, please feel free to contact me any time!
Short sale listing prices are imaginary to me because they're not official until approved by the bank. AND, many are surprised when they get a huge counteroffer. Crazy prices in short sales are unfortunately just a tease and marketing ploy to get multiple offers in.
I wrote a blog about short sale prices. You can find it here: http://www.trulia.com/blog/felixhung/2010/09/offering_the_fu
The catch: you may be one of 20 offers on that short sale listing and the accepted price may be a lot higher. if accepted by the seller, your short sale offer may be countered to fair market value.
Hope that helps. Have your agent look up each and show you the short sales vs REOs vs traditional sales.
If you want to search the most up-to-date MLS listings go to:
The following Web page has a map that shows you average prices in the Westside areas of LA. You might find it informational:
PS - I am originally from Iowa and would be happy to have a conversation with you to see how I can be of assistance. You can click on the Web References link below and contact me thru my Web site.
Take listed prices with a healthy dose scepticism these days if it's a short sale.
It's hard to say, not knowing the houses in question. I would venture to guess, if it looks too good to be true, it probably IS. You might consider leasing in your desired area until you become familiar with our fair city, and purchasing later.
The homes you are seeing for sale are probably foreclosures. Let's say you didn't pay your mortgage payment of $4000 per month for 6 months. They would post it as foreclosure for sale for $24,000. What they don't usually mention is the address. It sounds like you are considering West Hollywood. On the low end homes start at 700k for a small home. A two bedroom condo can be had in the 400s that's a major fixer. There are other areas to consider if that's out of your budget but if it looks too good to be true or the address isn't disclosed that it's proabably not real. Also, sometimes by mistake homes for lease will be listed for sale. So the price can be per month but look like it's for sale at that price.
The Carrabba Group
Keller Williams Hollywood Hills
First Weber Group
Certified Distressed Property Expert
Your market was hit hard during the down market. Houses in CA dropped significantly. Mostly, these houses that you're looking in, may have suffered from the decline.