Home Buying in Willow Glen>Question Details

Amy, Home Buyer in San Jose, CA

the house went from 339k to 249k in one shot, does it mean there is something wrong with the house? If it does, how does one go about to find out?

Asked by Amy, San Jose, CA Fri Dec 10, 2010

Help the community by answering this question:


There could be many reasons:
short sale
inappropriately priced the first time.
nearby market conditions changes
negotiations with short sale lender and new appraisals determining new pricing
inspections results.

Your real estate agent can do the research to find out this kind of information. If you are an interested buyer, you can work with a professional (your Realtor) who will make the calls to find out the answers you are seeking .
1 vote Thank Flag Link Tue Dec 21, 2010
Great answer Serena!
Flag Tue Jan 15, 2013
You agent should be able to pull up all relevant information from the MLS. Without knowing the exact property, here are a few possible scenarios.

1) It started out as a regular sale. It's priced according to the minimum price that homeowner can afford without bringing money to the table. Once it's been on the market and it doesn't, homeowner realized the market price is below what they owe to the bank. They give up on selling it as regular sale and it changes into a short sale.
2) It's a short sale from the beginning. The listing agent lowers it to generate more interest and more offers. Please note that in a short sale the final sale price is pending lender approval. Even though you may have a contract with the seller on a certain price, the bank can come back and ask more.

If you don't have an agent yet, feel free to contact me for further assistance on this property.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Tue Dec 14, 2010
Hi Amy, There could be many reasons why the price went down. Maybe it was overpriced to begin with and the seller agreed to decrease the price. Have your Realtor ask the listing agent.
0 votes Thank Flag Link Tue Jan 15, 2013
Ask your agent to find out.
The listing agent and the seller must disclose if there is anything wrong with the property and they already aware of it.
0 votes Thank Flag Link Tue Jan 15, 2013
Amy one of the reasons is that it is a short sale or foreclosing soon.

However, link.

Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Mon Oct 17, 2011
Hi Amy

There is home on Fuller Ave. Which is a foreclosed property.

However, the one you are referring to is a Short Sale, Meridian Ave., which is a Condo.
On Meridian Ave. They just had a transaction that fell through.

Let me know if I can help you further with regards to comparable etc.

Happy Holidays.

Perry & Ruth

Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Sat Dec 18, 2010
It could be the listings agent to get an offer, any offer, NOW. Short sale negotiations with the bank cannot start until the listing agent gets an offer in hand. Even if it's a lowball offer that has no chance of getting approved, the listing agent still wants an offer to get the process started.
0 votes Thank Flag Link Sun Dec 12, 2010
If you don't have a Buyer's Agent, you definitely need one. The Buyer's Agent will protect your interests, but his/her commission is paid by the Seller. There are many reasons why a home may have such a large decrease in the listing price. Since you didn't give any information about the house, it is not possible for me to speculate on the specific reason for the decrese in listing price. However, a local Buyer's Agent will be able to do the background research.
0 votes Thank Flag Link Sat Dec 11, 2010
Hello Amy,
I do not see the house so it is difficult to tell you if something is wrong with it. But your agent can help you get some inspections to determine if something is wrong with the house. You are normally given 10 to 15 days to inspect the house and get your loan approved before removing contingency. Lowering the price from $339k to $249k is a common practice in real estate; this does not mean the seller will sell it for $249k.
Good luck to you,

San Jose Realtor
(Certified Short Sale Specialist)
0 votes Thank Flag Link Sat Dec 11, 2010
Hi Amy,
I don't know which house you are refering to so it is hard to give you an exact reason. Most probably it is a short sale and the agent is trying to get an offer into the bank, or this is the begining bid for an auction, but without knowing the home that is just a guess. This does not mean there is something wrong with the property it only means that they WANT an offer quickly. You have to understand a home at that price usually does have something wrong with it or it is in a terrible location. To find out ask your agent to contact the listing agent for more info, or to see the home and look for yourself.
If you don't have an agent I would be happy to assist you, just email or call with the info on the property and I will find out for you.
DRE# 01397256
0 votes Thank Flag Link Sat Dec 11, 2010
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