Low Ball Offers & Pretend Pricing
Buyers are going low, way way low. When writing offers these days even if a property is priced fairly or below market, buyers want it lower, much lower. Some sellers are willing to consider others not so much especially the bank. What's interesting and I see it happening often in short sale or foreclosure scenarios is the bank is pricing a property way below market, like $50. to $80. a sq ft in West Plano in order to get multiple contracts to possibly bid the property higher. Now this does work to some extent but you must be a patience buyer because despite a house being in distress the banks don't seem to be.
Yes, you heard me right.
Even with a cash offer and quick close they will drag their feet. Why? Still haven't figured that out except they don't understand the retail consumer or real estate. It's quite obvious why banks should not be in the real estate business because none of them know how much a property is worth. All they need to do is look at the tax roles and recent comps which I'm sure the listing agent has done, it's not rocket science...
The bank owned properties only care about the sales price, their addendum's override the familiar 1-4 residential contract. It's pretty cut and dry. What the banks don't understand is the consumer determines value not the banks, they have been too long in taking appropriate price reductions, so guess what? The value is lower now, like I said it's not rocket science. I can almost predict another RTC (Resolution Trust Corporation) is on the way, similar to the savings and loans scandals of the 80's - only this time much, much bigger.
I know the picture has nothing to do with the topic but it's prettier than a foreclosure.
[where:75024, Shops at Legacy, foreclosure, short sale]
