Home Buying in 91702>Question Details

Stephanie, Home Buyer in Azusa, CA

If a REO/forclosed SFH has been on the market since april, what are my chances of getting it at the list price or just 3 percent above? Hm in gd con.

Asked by Stephanie, Azusa, CA Thu Sep 1, 2011

Home was re-built in 2006 and is in good enough condition for FHA financing which is what I am pre-approved for. I am also going to offer to pay half of the closing costs.
Thanks

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Kevin Olson and Jessica Laude’s answer
Always pay "market" price, not "list" price. Sometimes the two are very close, but consult a Realtor or appraiser to ensure this is the case with the home you are considering.
0 votes Thank Flag Link Thu Sep 1, 2011
LISTING PRICE

Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

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 “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” 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.
0 votes Thank Flag Link Thu Sep 1, 2011
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