Question Details

Denise Stuart, Real Estate Pro in San Jose, CA

What happens when a Realtor prices a home for the bank and the market causes a price reduction?

Asked by Denise Stuart, San Jose, CA Thu Feb 28, 2008

If a Realtor lists a home according to the market comparable (not a neighborhood specialist)
Then the market declines how does a Realtor get a price reduction with the lender, being a Short sale or Bank Owned property?
Thanks in advance!

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Answers

3
Karen,
funny you mention this,
I just heard about the two appraisals in my sales meeting
Thanks for the input both of you!
Denise
0 votes Thank Flag Link Tue Mar 11, 2008
I was recently involved in a short sale that was moving along until we got an appraisal (actually TWO appraisals) that indicated that the home would only appraise at $5k less than the offer. REO company had no choice but to lower price.
0 votes Thank Flag Link Tue Mar 11, 2008
Good question Denise,

When I have had this happen to me, I simply schedule a meeting with the bank representative to discuss the current market conditions. When we get together I present a new CMA showing the recent (lower) sales and the new (lower) listing price of competing active listings. I actually say to my client, “Don’t shoot me - - I am just the messenger” I also say it is my fiduciary duty to keep you informed with current market conditions. Then I go for the price reduction again.

The banker typically either signs the reduction or in some cases, depending on his level in the bank and the size of the bank, he may need to get approval. Regardless, if the market drops, they like any other seller have no choice than to drop their price too. If they don’t, they will end up holding the property for a very long time.

Hope this helps you,

Best wishes,

Bill Kosena
0 votes Thank Flag Link Tue Mar 4, 2008
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