One of my clients marked a home in Avondale’s Garden Lakes subdivision as one of their favorites today. The search I set for them is designed to skip past short sales since these homes aren’t actually for sale at the prices listed.
This one slipped through because the agent didn’t note the listing correctly. And the marketing copy is enough to make one believe this is the deal of the century:
!!! Short Sale !!! Bankruptcy, Pre-Forclosure! … This is a Steal being on the water with a pool. This will not last long! Make an offer today before it is gong (sic). Nobody know when the bottom of this market is and we may never see this home again for this price. Don’t let it pass you buy (sic)!
Spelling aside … we’re not even seeing this home now at this price. The owner owes the bank about $117,000 more than the list price this agent has chosen. Read that one again – $117,000! That’s about a 33% hit the bank will take if they accept a full price offer on this house as a short sale.
Even under the oft-mistaken impression that the bank doesn’t want to own the home (the idea the bank doesn’t want to own it is correct; the idea will do anything not to own it is pure myth), it’s fairly unlikely the bank will willingly accept a 33% loss to sell this home at a substantial discount to current market value.
Market value may be where buyer and seller meet but in this case, the seller’s not willing to meet at the price this agent’s advertising.
RE 2.0 good – buyers being able to search for properties online. RE 2.0 bad – buyers not realizing what they’re seeing isn’t always the full story and finding themselves on the wrong end of a bait and switch list price.
[tags]short sales, Phoenix real estate[/tags]