Is It Really All about PRICE? Or does CONDITION Play a Part???

By
Real Estate Agent with Alain Pinel REALTORS BRE#00861017

If you recall--and you probably don't--I have a short sale listing in Richmond. Whereas my clients paid $500,000 for this adorable bungalow, made significant improvements, invested their life savings, and this home should have been worth $550-600,000; I had to list it at a fraction of what should have been its' value:  $350,000--to no avail. A few months later, I dropped the price to $325,000--still no takers.

After doing a new CMA, I dropped the price drastically to $250,000-still above the comps--as this is a special property.

Amazingly enough-lots of interest-and FOUR offers. Hmmm, why? Yes, it is priced well, but there are houses selling and listed for $150,000; 100,000 and even less! Why is my listing selling for close to the list price? Because it is still-unlike almost everything else nearby-owner-occupied!!!

Banks that are kicking homeowners out are doing a disservice. A vacant house is an invitation to criminals, drug-users, vandals and vagrants--and a major decrease in value!!

Thus, I have two point here:  one-a well-priced home will sell, but condition-or value-trumps a dump and two-lenders, PLEASE let people stay in their homes as it will maintain the value better and keep the home from being trashed (more on this later).

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