Home Buying in Pomona>Question Details

Ben Teal, Home Buyer in Dallas, TX

After submitting offer on property, listing price decreases 10k!

Asked by Ben Teal, Dallas, TX Thu Dec 23, 2010

Three weeks ago, I submitted an offer on a bank owned property. I'm yet to hear anything back from the bank. As of yesterday, the bank lowered the listing price by 10k. What does this mean from a buyer perspective? Why would they lower the price despite having received offers for a higher amount?

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Who knows? Lenders are crazy. Really. It's possible/likely that the bureaucrats in the bank who are responsible for price adjustments weren't aware of the offer you made.

Check with your Realtor and get advice on the best strategy. Maybe it's to leave your offer in. Maybe it's to withdraw your previous offer and submit a new one.

Good luck.
1 vote Thank Flag Link Thu Dec 23, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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I've seen the listing price decrease, even when an offer has been submitted, when it was pre-determined in advance/writing that price adjustments would be done at certain times. For instance, when the property was listed it was decided that every 30 days they would reduce the price $10,000.

The problem with this is that it may all of a sudden cause multiple bids on the property. Of course, since you indicated you were above the price reduction you may still be in good shape. You should call the agent to find out what is going on.

Best of luck.

Regards,

Joe Finnerty
484-241-1641
Long & Foster Real Estate, Inc
Lehigh Valley Office, PA
610-865-7776
0 votes Thank Flag Link Sun Dec 26, 2010
Here are some reasons: (1) the property was burgalarized, (2) the property was vandalized; and (3) the property was both burlarized and vandalized. I have seen foreclosure homes that you could only imagine. Sometimes vandals break in, remove everything and then start flooding the home by turning on the bathtub. If you happen to be the realtor who happens on the scene after the vandals leave, it isn't a pretty site. There can be black mold on all the walls in the home an inch thick. I have seen floor tiles chipped out and kitchens and restrooms missing. Usually after something like this, I report it to the listing agent and then the bank lowers the price. I am also curious to know how you know that all the offers they have are for more than the listed price. You might be assuming that they are for more - but they might be for less as well. Banks don't like to keep inventory on the market for a long period of time so they reduce the price to make it sell faster. Any of these scenarios leads to a price reduction.
0 votes Thank Flag Link Sat Dec 25, 2010
Mr. Teal,

Did you make your offer through a good Real Estate agent? If so, what is their advise? If this is a bank owned property listed on the MLS, it does not make sense that they would not even get back with you. If you do not have a Real Estate Agent looking our for your best interest, my suggestion is you look for a good agent that can help you navigate through the home buying process.

Happy holidays and best of luck buying The Right Property at The Right Price.

Feel free to visit my website and use some of the tools I have for homebuyers.
0 votes Thank Flag Link Sat Dec 25, 2010
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