Debra B Albe…, Real Estate Pro in Port St Lucie, FL

What do you think of a WAY underpriced property?

Asked by Debra B Albert PA, Port St Lucie, FL Sun Feb 6, 2011

You see them from time to time. I think:
Can you really buy it for that?
Is it asking for bids?
How was that priced?
What do you think?

Help the community by answering this question:

Answers

7
BEST ANSWER
False ad's have people PAY for some monthly fee.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
1 vote Thank Flag Link Sun Feb 6, 2011
Usually it's a ploy to attract multi-offers on a property and it ends up selling for close to market value. Or, the property is a true dump and will take a lot of money to bring it up to livable standards. I think when agents really under value a good property are doing a disservice to their peers.

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
homesales411.com
Web Reference: http://homesales411.com
2 votes Thank Flag Link Sun Feb 6, 2011
Hi Ron & Debbie, We have listed way under priced property it's rare but it happens in our case the homeowners requested it because 1 of illness and the need to sell immediately another was an estate which they only wanted to get out very fast and move on.
Do inspections if the report comes out well then we can't see a reason not to buy it. It's a deal take advantage of it.

all the best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
1 vote Thank Flag Link Sun Feb 6, 2011
Thank U for best answer vote !
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Sun Feb 6, 2011
I have to say as a REO Realtor I try to price 10-15% lower than what the property is worth not only to produce offers but to make sure it sells within a 30 day time frame. They mostly sell within the first week a lot of Realtors that sell bank owned properties are pressured to make sure we get the property sold.

With normal listing especially short sales you are quick to realize that the agent is just pricing to get the property noticed especially if you know your market. Doing a quick comp pull on realist will let you know if the property will sell for such a low value.

It also depends on the properties condition mold holds a huge discount considering that your buyers pool has just been diminished. And other factors come in to play when pricing homes.

I think as a agent in the business you have to be able to determine for yourself if the property is going to sell for such a low price then educate your clients on why the pricing might be so low.

Let a RE/MAX Agent bring you home...

Samantha James-Tharp, PA
909 W. Midway Road
Fort Pierce, FL 34982
sjtremaxrealtor@gmail.com
http://www.soldbysamantha.listingbook.com
1 vote Thank Flag Link Sun Feb 6, 2011
Generally 10-15% below market value. The market value is the adjusted value of a home based on similar sold and active properties, adjusting for updates features, and size of home. Generally these homes will sell much faster on the market, sometimes with multiple offers (even in this market).

I hope this helps.

David Jaffe-SRES, CDPE
Realtor-Coldwell Banker
1 vote Thank Flag Link Sun Feb 6, 2011
You have to automatically thow out Short Sales... the listing prices are usually ficticious...

Bank owned usually underprice to create a multiple offer situation but they usually accept an offer too quickly so they don't maximize the sale price.

I think it's a good strategy if the property shows in immaculate perfect condition and the Sellers have a reasonable expectation (and enough equity) to go ahead and sell after two weeks to the highest bidder.
0 votes Thank Flag Link Sun Feb 6, 2011
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