image courtesy of Stock Exchange user PinkDragon
We made an offer yesterday for our first time buyer client on an adorable little starter home in Glendale. It’s bank owned. It’s listed for $109,900. All the appliances are there, seem to be in working order and the house is move-in ready.
We looked at the comps, shared them with our buyer client, and she decided to offer $130,000.
I just hung up the phone with the listing (i.e. seller’s) Realtor. She sounded completed unimpressed by an offer of $130,000 on a $109,900 listing. Unimpressed!
Bankers, c’mon! You’re killing us! Stop listing your REO properties at 20% under the market values. You’re just making us all crazy. Bidding wars aren’t fun and they’re making our buyers (and us) feel like the yarn doll in the picture. We’re all gonna go postal soon, and we know where your headquarters buildings are located.
Heather Barr is a Realtor and a happy workaholic. She eats more than someone her size ought to be able, and is a runner as a consequence. Her TiVo's full of spy thrillers, police procedurals and Whedonesque sci-fi.
{ 5 comments… read them below or add one }
@ Doug – from one extreme to the other! Crickets chirping in January; 60-70 hour weeks this summer. (and income levels weren’t different enough to warrant it!! oh well, watchagonnado..?
Now that’s a tough market.
Ready, willing and able buyer… did you even have those 12 month’s ago?
I agree with Chris…VERY FRUSTRATING. I’ve lost several deals because if this!
@ Daren – good questions…
I think that A) the banks (sellers) do have the final say, and I think that B) the listing agents are in many cases advising their clients (the bank-sellers) of the market’s activity levels and methods to get the best price in the shortest time for their property.
I don’t know that I’d call it unethical, but it is EXTREMELY FRUSTRATING to be representing buyers in this market. Especially people who are ready to write their first offer & haven’t “faught the lions” yet.
I’m convinced knowledge is power, and in this market that’s even more true than ever.
Is it the bankers we have to blame or the real estate agents? It would seem to me that the agents taking the listings and putting them into MLS at a price that is so far below what they know the bank will accept is pretty unethical. I know ultimately the sellers have the final say but I have a hard time believing the banks are pushing for a list price of $109K when the first mortgage payoff is probably double that.