Home Buying in Palmdale>Question Details

Vanessa, Both Buyer and Seller in Lancaster, CA

are listing agents ever given the power to lower the asking price on a bank owned home after its been on the market for a period of time?

Asked by Vanessa, Lancaster, CA Wed Aug 18, 2010

were trying to purchase a bank owned home and both our agent and the listing agent feel that the house is over priced for the condition that it is in. It is considered uninhabitable and probably needs $25k worth of kitchen appliances alone. (gourmet kitchen made to have all commercial size appliances that were removed) Will the listing agent ever be given the authority from the bank to lower the asking price to something that she feels is fair?

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Mack is right on. As an agent, I work for whoever the owner is until the house sells, I'm fired or I quit. If a listing is overpriced all an agent can do is supply the data and make the requests. If you haven't done so yet, I'd forget about the asking price and make an offer for what you feel it's worth. Nothing tells a seller what a home is worth like an offer. All offers must be presented. The bank can accept, reject or counter offer. You'll never know until you try. Best of luck.
1 vote Thank Flag Link Thu Aug 19, 2010
Vanessa, the listing agent is not a principal to the transaction, and so they do not have the authority to reduce the asking price on their own.
1 vote Thank Flag Link Wed Aug 18, 2010
I am a broker in Palmdale, Lancaster area so please call me to discuss your question. Only the owner has the authority to change the price.
Katie Stewart
661-965-5201 emial: reokatie@aol.com
0 votes Thank Flag Link Tue Aug 24, 2010
The banks pretty much set their own prices, but they do look at CMAs and suggestions from listing broker
0 votes Thank Flag Link Fri Aug 20, 2010
Hi Vanessa, The short answer is "no". Only the owner can raise or lower the price on a listing -- even if the owner happens to be a bank.

But there's a lot more to the story...

Banks hire listing agents to list their foreclosed properties but almost always ask for some kind of a marketing update once the property is on the market. You would expect an agent to provide some kind of update to any seller but Banks usually have an online form that they ask for the listing agent to fill out. Most of the time Banks will ask the agent to answer a question like "Why do you believe the property has not yet sold?" or "Do you believe that this house is still priced correctly?".

So even though the listing agent cannot actually change the price, they usually can have some influence with the Bank or seller regarding pricing.

Hope that helps! Good Luck!

0 votes Thank Flag Link Fri Aug 20, 2010
Offer what you think it's worth and/or, Make your offer contingent on the appraisal. if it comes in low, you can renegotiate the price at that time.
0 votes Thank Flag Link Thu Aug 19, 2010
Usually, a bank will require a listing agent to supply them with comps to get a base line for pricing and then make adjustments basd on condition. Obvioulsy, no one at the bank has any knowledge of the house other than what's owed on it and that can sometimes be a huge hurdle to jump over!
Web Reference: http://www.jimmccowan.com
0 votes Thank Flag Link Thu Aug 19, 2010
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