My Neighbor is Selling for How Much??

My Neighbor is Selling for How Much??

You just found out your neighbor is selling their house. What's the first thing you do?

You call a real estate agent to find out what it's selling for, right? At least that's what most people do.

They tell you it's listed for $xxx,xxx. You're speechless.

It's about 50% lower that what all the other comparables homes in the neighborhood have been selling for.

There are a few possible reasons that this is happening:

1. They Need to Sell FAST! Sometimes situations occur that money doesn't mean nearly as much as time. Job transfer, divorce, etc.
2. The agent doesn't know how to "comp out" homes.There will be a LOT of offers on homes listed way below market value and any agent should be able to get close to market value for the house. I said should. It's not a guarantee.
3. It's a Short Sale and the agent just wants to create a TON of offers. This is probably the reality of the low listing price. Don't worry, the bank that needs to approve the short sale is kinda on your side. They're going to do multiple appraisals/BPO's to make sure they get as much of their money back. The days of thinking the bank will sell the house for "pennies on the dollar" are well behind us. They'll get the price that's fair for the neighborhood and your house values won't crash.

UNLESS the house goes into foreclosure. Then you can scream!