Home Selling in 91505>Question Details

Cpa, Mba, Home Seller in Burbank, CA

Price it right you say. This means a fire sale price like how the banks sell their properties. .

Asked by Cpa, Mba, Burbank, CA Wed Jun 30, 2010

Price it right you say. Fire sale price like the banks. They average 27% below FMV. It appears to me that the sales volume is close to 80% of average, but the banks account for half of this with their fire sale prices. For a normal home owner that is not under duress, this is not the market to be in. May be in 2013, after the massive ARM reset foreclosure unloadings take place, with a new President, and the job situation improving.

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The market dictates the price of the house. If a property is priced too low, it will receive multiple offers and be bid up as is happening right now with all sales, not just bank owned....real sellers have figured out often you get more attention and a higher end sales price by pricing it low out of the gate. Pricing a property high also does not mean it will sell for that price.

Not sure we've seen the bottom price wise yet and when we do, gains are likely to be very very very slow.
1 vote Thank Flag Link Wed Jun 30, 2010
If you are not in trouble with your property such as behind in payments or underwater, value versus loans. You can get full price plus, if you become creative, people are having problems qualifying.
There is a way to sell fast for full price or at least market value.
Web Reference: http://www.we-pay-cash.net
1 vote Thank Flag Link Sat Jul 3, 2010
Fire sales price like the banks??? Hhmmm the banks don't list the house on the MLS agents do and if an agent can convince the bank to sell it for a certain price then they do. Now this is only true for REO's not Short Sales. In Short Sales, the agent lists the house to what they thinks is FMV and hopes the bank accepts the sale's price once the paperwork is submitted. Now in this market just like the last, you have agents that price their listings $10k less than the neighbor as compared to before when it was $10k more than the neighbors. Now do these agents take in consideration the whole scenario of the property...no, but it is what they feel is right and of course the easiest.

Like I tell my clients I am not here to sell you a house, I am here to help you find and buy a house but the house has to sell itself.

James Sanchez

Pacifix Realty
3500. W Olive 3rd floor
Burbank, CA 91505
Lic# 01436395
Direct: 818-504-2569
1 vote Thank Flag Link Wed Jun 30, 2010
Dear Cpa, Mba:
If you do not NEED to sell right now, don't.
Property values will never get back to their 2006 highs...it was a false market to begin with.
So any equity you "lost" was what was lost by not selling at the top.
Can't moan over the past.
The banks are thieves. But you know that.
If the govt. had divided up that 3 trillion plus and cut a check to every adult US citizen we would not be in this present crisis. The money would have gone back to the people, who would in turn have opened businesses, paid debt, bought cars, and houses.
Even they do not control the market value. Only the ready willing and able control the prices.
The economy isn't just shaky. It's in ruins.
A lot of my clients are buying British pounds, Many are investing overseas and getting their money out ofthe US.
What can you do? If you do not need to sell, stay put. If you are under duress, we have investors who may be able to buy your property. Or you can try to sell it yourself. My company is helping sellers by taking listings for 1% and handling all the paperwork for those who sell on their own.
Good lick and God Bless.
1 vote Thank Flag Link Wed Jun 30, 2010
I am not sure where or if you would like an answer to your statement, but I will say that pricing a property right, which means at fair market value, vs. pricing at fire sale prices are two very different things. It sounds like you have either had a bad experience or are frustrated with the amount of distressed sales on the market. Either way, not a great situation.

Home sales are all about supply and demand and the value that buyers perceive in a particular property. If you don't to sell right now, maybe waiting is the better strategy.
1 vote Thank Flag Link Wed Jun 30, 2010
CPA MBA,
Not necessarily. I agree that some bank properties are priced way below market. But some are not. When you have a Comparative Market Analysis done, you don't just take the face value. Like the old saying goes . . . the devil is in the details. You have to be realistic in looking at "comparative" properties.

I recently did a CMA for a client above Glenoaks. If you draw a circle around it to do the CMA, one of the properties was a bank owned major fixer. Another was one of those McMansions. So I had to look at the properties and see which ones were actual comps.

I think you understand that the market has pressure to go down. Inventory levels are rising, economic problems still abound, and eventually we are likely to have increasing inflation. These interest rates cannot continue forever. So, if you can afford to wait, my suggestion is wait. But it will be another 3 years minimum before we really come out of this, in my opinion. And that is probably optimistic.

But, if you need to sell, price it right and get is sold.

Let me know if you need help. Even if it is just to give you my best estimate as to your homes market value at this time with no obligation, I am ready to run the numbers.

Tommy Lee
323-821-2292
tommy.lee@dilbeck.com
1 vote Thank Flag Link Wed Jun 30, 2010
Hi Cpa Mba, Pricing it right is pricing it according to current market conditions in the area. Foreclosures tend to have issues like deteriorating from being vacant. Then you have a few foreclosures without damages and stress. So the prices will very with foreclosures and banks are not in the business of holding on to real estate. Banks would rather sell the property and this is the reason for their pricing. I would price a standard home according to current market prices. Sometimes banks with their agents intentionally price a home low to stir up a bidding war and sell the property for $10s of thousands more than asking. Work with a REALTOR in your area to get an idea of what your home if that is what you are inquiring about; would most likely sell for within your time frame.
0 votes Thank Flag Link Tue Oct 21, 2014
Pricing the property right is always the best way to sell and getting the buyer to the table. You maybe can get over asking price also
0 votes Thank Flag Link Tue Oct 21, 2014
CPA MBA,
I am sorry some agents don't understand your frustration. I hope you were able to work through things. If you need any further assistance, please give me a call.

tommy lee
323-821-2292
0 votes Thank Flag Link Wed Jul 21, 2010
Hmmm. This seems like more of a blog post than a question.
0 votes Thank Flag Link Sat Jul 3, 2010
You appear to be very upset with the market, but are wanting to sell. You did not ask a question for response. I suggest you talk to several Realtor's in your area about the possibilies for selling your home.
0 votes Thank Flag Link Wed Jun 30, 2010
CPA
Boy, sorry hear that things are not going well.. I was looking for a question but do not see one. Do you have a question that I could help you?
0 votes Thank Flag Link Wed Jun 30, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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