Home Buying in Tucson>Question Details

John Armbrus…, Real Estate Pro in Tucson, AZ

What percentage over listing price are bank-owned, short sale properties selling for nowadays? 10-15%? More? Less? For under 130k, that is.

Asked by John Armbruster, Tucson, AZ Thu Sep 20, 2012

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6
Hi John,

The only reliable rule with short sales and foreclosures is that there are no reliable rules.

Donna Moulton
Associate Broker
Tierra Antigua Realty
http://www.SweetDesertHome.com
520-909-1171
0 votes Thank Flag Link Sat Oct 6, 2012
It all depends on home, location, and listed price. Before you make an offer you need to see the comps on similar houses and let that make up your mind where the price needs to be. Unique homes will always get unique prices. Let's me know if you want to talk specifics.
0 votes Thank Flag Link Thu Sep 20, 2012
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 20, 2012
Hi John,

I have found that the longer a bank owned home is on the market, the closer to listed price the home ends up selling. This is because the bank has typically made periodic adjustments to the home during the listing period.
0 votes Thank Flag Link Thu Sep 20, 2012
Hi John,

Not all bank-owned are selling over asking, but if it's a decent home in a desirable area I'm seeing it happen quite often. In the 100k to 200k range, I'm experiencing about 15% over.
0 votes Thank Flag Link Thu Sep 20, 2012
There is no set formula as every transaction & property is/are different. I highly recommend you work with a local Realtor & look at recent sold comps. Plus factor in how much you (& your family like the house). I am at a home inspection now we were 5th offer but made the strongest & complete offer & my buyer "won" the property. Remember on short sales, no one knows if the bank will let it go even at full list price. A lot of factors go into your decision, best thing you can do is work with an experienced local Realtor.
Best of luck.
Spirit
0 votes Thank Flag Link Thu Sep 20, 2012
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