Let the Bidding Begin!
A home just came on the market here in Prairie Oaks that will get a lot of buyers excited. This home is priced well below anything else comparable here in Prairie Oaks. Even a home, on the same street with almost the same square footage sold at $450,000 at the end of January.
For the next couple of days, I am sure it is going to be a zoo, with all the agents showing their buyers this home. All of those buyers are thinking they are going to get a deal. I doubt it. Some agents when listing a short sale, will list lower than market value to bring in a lot of buyers who try to out bid each other. Keep in mind the agent (and seller) sets the list price. Neither one knows what the bank (or banks) will accept. I can tell you that once the bank starts to look at a short sale offer, they will have a Broker Priced Opinion (BPO) done, giving them an estimate of current market value. Then they are going to look at how much they lose if they foreclose on it versus selling it as a short sale. No bank (99.9%) is going to approve a short sale that is priced so low under current market value.
If you are interested in making an offer on this home, or any other short sale, that is priced significantly under market price, save yourself some trouble. Look at comps for the area, compared to the distressed that have sold, and make a realistic offer.
I will be showing this home tomorrow to one of my clients. He already knows that he won’t be buying this home for the list price (and then some).