One thing that is certain (in the southeast Michigan real estate market anyway) is that many banks have been pricing their inventory to create a bidding war. In my opinion, this is a great way to establish, "market value."
In the last two days of 2010, we showed a bank-owned, all-sports lakefront home that sold for cash in the first weekend on the market and for $70,000 over the asking price. That was still less than what a buyer with financing was willing to pay for it. In 2011, we've already had 3 buyer clients place offers on bank-owned properties ... all of which were on the market for a handful of days, and all of which had multiple offers. The jury is still out on our being the successful bidders, or not. Is that happening in your marketplace?
Certainly the phone will still ring with those buyers that are insistent that ... and they let you know it in the first 15 seconds of your conversation ... they pay, "less than market value." I received an email this past week that simply said, "We want a property in Oakland County and must pay at least 20% less than market value." Ummmmm ... DELETED!
I digress.
This might make sense, Derek, but what do you mean by, "...Well, Sort Of," then?
The same logic of ridding inventory doesn't seem to have carried into all of the loss mitigation departments of many of these same institutions yet! We process and closes a respectable amount of short sales with a success rate over 96%, but we still see a lack of rationale and bad judgment on many files all the time.
So, why can't the short sale and loss mitigation departments take some notes from the REO pricing folks, implement some logic into their business unit, and make sound business decisions for their short sales and our/their industry overall? That seems simple enough, right?
Hopefully that phenomenon will occur in 2011 so all of us can say ... "Banks Are Finally Getting It ... Period!"
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