The banks establish the asking price based on appraisal or something called a Broker Price Opinion. If the initial estimates are out of whack with true market value it can take the bank a while to adapt. One successful strategy that I've used in the past is to submit a fair offer and also submit current comparable sales at the same time. That way the person on the other side of the negotiation has a better understanding of how you came up with your offer price.
That is a good question and I anticipate that this will become a frequent occurrence. My thoughts are that since home values are increasing, lenders don't feel that it is necessary to reduce the price anymore. I actually had a conversation with my mortgage broker about this. The days of homes selling for 35-50% below market value are in our rear view mirror. However, each situation is different so I wouldn't get discouraged.
Keith L. Bosworth
As you noted, the price is reduced monthly. The bank IS reducing the price.
At some point the price WILL be attractive to you.
That is good news.
The bad news is the price will have been good for someone else the previous month.
You will lose the house because someone else was willing to pay $10,000 more.
That is EXACTLY the way it is supposed to work.
It is very likely it will sell ABOVE the last published price.
The fact that the bank/owner/seller is now regularly decreasing their asking price is also a common practice during the foreclosure selling process.
If this property is grossly overpriced, I would recommend seeking the support of an experienced local real estate professional that can help you understand the actual current value of the property and how best to proceed with making an offer that is defendable.
Furthermore, I see you are a Homebuyer. I have a special program that will help you save money and keep more money in your pocket during the purchase of your home. Its impossible to explain it on this forum, but feel free to call me and I will be happy to explain it to you.
Eddie W. de Leon
CA-BRE Broker 01393751