Truly Priced to Sell Leads to Sale

Jonathan Dalton, Phoenix Real Estate Agent“Is that list price a typo?”

Such was the question from a prospective buyer about a bank owned home we viewed in Goodyear’s Estrella subdivision (nee Estrella Mountain Ranch.)

No, it wasn’t a typo. But unfortunately, another buyer made that discover a day or two ago; the home was active in the MLS because the bank, while providing verbal acceptance of another buyers’ offer, had not sent back the paperwork to make it official.

There are other options on the market, both bank owned and otherwise. But the entire episode served as further proof of bank’s motivation to sell after the foreclosure has taken place and the home is on the lender’s books.

Most bank owned homes are priced aggressively from the start. There are exceptions, but most are priced at or below the last sales in an effort to attract interest. And the list prices are legitimate.

Contrast that with your average short sale where the bank has next-to-no motivation to sell the home … and virtually no motivation if there’s mortgage insurance against which a claim can be made. We looked at a couple of those today.

Some of my buyers recently have debated making offers on short sales. They’re looking for investment properties and are in no particular hurry, so the elongated time frames do not mean anything to them.

But there are opportunity costs when pursuing a short sale … homes that could be had for the same price or less, without the uncertainty and the waiting, that come on the market while buyers wait for the bank to provide an untimely answer.

Incidentally … this home in Estrella was on the market on and off for a year before the bank foreclosed and took possession of the home.

After the bank took possession? It was under contract in less than a week.

That, dear readers, is aggressive pricing.

[tags]Phoenix real estate, bank owned homes[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

2 Comments

  • Frank 10 years ago

    The price is not a typo, just go see the house and see why the price is not a typo. I went out to see several bank owned poperties, no thank you, what you see is what you get and you will need to pour much more money into the house before it is anywhere ready to live in. Just go and buy the houses that are owner owned which now are priced close to bank owned since most home owner were forced to dropped the listing price because of this bank owned and foreclosure frenzy, and on top of it, you can ask for repairs to be done before you close on the house, unlike bank owned.

  • Jonathan Dalton 10 years ago

    In many cases you’re absolutely right, Frank. We even joked about it as we went into the house.

    But aside from carpets that needed a decent cleaning, a little paint and a pool that needed some chlorine shock, this one looked to be in pretty good shape. I’m sure there are things that would appear on the inspection report but compared to most of the bank-owned homes I’ve seen, this one was in probably the best condition – comparable to an owner owned house.

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