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DON'T TAKE AN OVERPRICED LISTING! Declinging Market Information
DON'T TAKE AN OVERPRICED LISTING IT MIGHT COST YOU MORE THAN YOU THINK!
REAL ESTATE DECLINING MARKETS, WATCH OUT!!!!
These are the resent changing rules that will affect an overpriced property. Don't be caught with one. Use this article to inform and prepare your sellers.
This is what most banks and mortgage companies are requiring from appraisers.
What is the sale to list price ratio?
Generally, the sale to list price ratio is based on the "original list price compared to the "sale price". For example, Original List Price is $350,000. At day 60, price is reduced to $335,000. The final sale price is $330,000. This represents a sale to list price ratio of 94%. A sale to list price ratio below 90% indicates rapidly declining values that could lead to a reduction in maximum LTV or a loan declination for the buyer. This is why it is more important than ever to price the house right. Do not take over priced listings because they will hurt everyone in this market. It isn't fair but the banks and the government are the ones who make the rules. We just have to learn what the new rules are and play by ... more
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