For a while there I thought the Banks were figuring out that they were destroying their own markets by dumping properties on the market at ridiculously low prices because while the prices on those REO's were less than the market, they weren't so low as to totally destroy values.
Well, they are at it again. I've seen several Fannie/Freddie properties hit our market in the past week that are priced so low it almost makes me want to cry. They are so desperate to get rid of their inventory of REO's that they are just dumping them on the market at any price, no matter how low it is, just to get them sold quickly. They are dropping prices weekly now. One example is a home that should probably sell in the mid 100's even at an REO price and it started out in the high 70's last week and has already gone down another 5K.
I know we need to get this excess inventory out of the marketplace but do they really need to destroy everyone's value in the interest of selling quickly. It is truly a sad state of affairs. I wonder if Walmart needs any extra greeters?
Sandra Paulow, Associate Broker, GRI, SFR Pinetop, AZ.
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