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UNDERPRICED SHORT SALES: GOOD FOR WHO, WHAT, & DOES IT WORK?

Reblogger Christopher Webster
Real Estate Agent with EXP Realty, LLC 47107

Original content by TODD PICCONI INLANDEMPIRE & SOUTH ORANGE COUNTY, CA BRE #01142052

 

I just found out the property I was making an offer for my client on last night has well over 30 offers!! Asking price was $39,000 on Short Sale. Many offers came in around $100,000.

My Question is:
Do you think Sellers should be underpricing their Short Sale Homes by 10%, 20% or ?
This was underpriced by about 70%....Why?

Causes a stir for nothing, at least that's how I feel about it.  When I told the Listing Agent it was severely Underpriced, he responded, "That's how the Seller wanted to price it."

How do you feel about it and why?

Posted by

Christopher Webster ~ Broker

Carrington Real Estate Services

 

Irmo,SC 29063

(843) 231~8343

Your Local Real Estate Sales Connection

 

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Comments(3)

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Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Chris:  Actually, I have never heard of anything quite so silly as underpricing a Short Sale listing so drastically.  What does it prove ?  I just don't get it !

Jun 03, 2010 06:12 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

It is a tool used in San Francisco.  It has been used there for years.  When the market is up or down the price as low as 50% below market and the bidding begins and many times sells for more that other comps in the area.

Jun 03, 2010 07:20 PM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

We price many of our homes under value if they are short sales...but when i say under value it is maybe 10-20%....never 70%....that would frustrate me....the prices we set work for a couple of reasons...one is to get interest in the properties....many times they do go over list price....but we get an offer quickly!!!   and in a short sale in order to get the process going you need an offer in most cases.    The second reason is that we feel that in a market that is now about 70-80% distressed properties....REO's are selling 2-1 wtih short sales...we need to price the short sale to be competitive with an REO....

Jun 03, 2010 08:43 PM