how can we compare and derive the asking price for homes on short sale/bank owned in todays market condition?

Asked by KR, 95066 Tue Oct 7, 2008

how can we compare and derive the asking price for homes on short sale/bank owned in todays market condition? will it take long time to get lender approval?

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Norman Alessandrini’s answer
Norman Aless…, Agent, San Jose, CA
Tue Oct 7, 2008
Hi KR,
My name is Allyson, I do specialize in bank owned and short sales properties. Vicky and Bart gave you some good advice, All Real Estate is priced on demand if it has good schools in a nice location then the demand for that property will be higher than for a one in a lesser desired location with the schools not rated as highly. What you need to do is work with an agent that is expereienced with Short Sales and REO"S because there is fierce competion for the "good deals". Now with interest rates still low this is the perfect time to buy an REO/Short Sale. I educate my buyers on REO purchases and what the banks are looking for along with whats happening in the market so you will feel confident and sure when you make an offer.
I have the experience you may be looking for. I have a web site where you can check me out and if you would like to put in a search just for bank owned properties it's FREE!
You can check out my web site at and set up your search or just email me with your needs and wants what price range and area or areas you would like to search in and I will set it up for you. You will receive up to date listings as well as any changes in price or status.

If you need any assistance or questions anwered feel free to email or call me.

Allyson Alessandrini
(408) 705-6578
0 votes
Bart Marchio…, Agent, Mountain View, CA
Tue Oct 7, 2008
Hi KR,

The best and most common way for Realtors and banks to arrive at an asking price for a short sale or bank-owned home is to look at comparable sales, pendings, and listings, get an average value then adjust for the subject property's condition and location.

What you should offer for the home will depend on three factors- the buyer's motivation, the seller's motivation and the amount of competition from other buyers. Every situation is different, so you will need to consult with a specialist in order to determine the best strategy for you and the home(s) you are considering. I'd be happy to help you, if you'd like.

Best regards,

Bart Marchioni
Real Estate Consultant
Certified Foreclosure Specialist
Certified Short Sale Specialist
Bank-Owned Property Specialist
(408) 266-3100
0 votes
Vicky Le, Agent, Cupertino, CA
Tue Oct 7, 2008
The asking price on short sale/bank owned properties is due to the comparable homes in the area that are currently on the market, pending sale, or recently sold homes. The sale price is then determined with the cooperation and approval from the lender/bank, even it if means a loss, depending on where the market turns for that specific location. It can take as fast as one week or as long as 2 months to get lender/bank approval.

The best option is to consult with a professional realtor to get an fair market value for your home or whichever home you are interested in.

Feel free to call me anytime if you have questions. I'd be happy to discuss this with you.

Vicky Le, Realtor
Intero Real Estate
Office: 408.342.3085
0 votes
Ali Moein, Agent, Saratoga, CA
Tue Oct 7, 2008
Hello KR,
I cannot give you any valuable advice on this. The best way is work with a Realtor familiar with the area you're interested in.

Good luck!
Ali Moein
0 votes
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