I just spoke with an agent in my area about a listing that he has been having for over 450 days. About two weeks ago, the list price was reduced from $119,000 to $54,000.
I had a client that had been watching this property for a while and when the drastic price change occurred, we decided to jump in.
I called the agent to see if he had anything working on the property and he informed me that he already had 10 offers and that since the price change, the home had been showing at least five or six times a day. I asked him how did he come up with the new list price, did the bank give him the number and he said "no! I'm using a pre-negotiated short sale company, that pre-negotiates the prices with the banks and then the homes are listed at that pre-negotiated price."
He said that the company was very good and that he has at least seven short sales that he has given to this company and they were all listed for only two and a half weeks.
I'm not sure. I will be watching to see how long this one takes to close. He just changed the status to Pending, so I'm curious as well.
Last Summer I had a similar situation when a buyer if mine was looking to purchase a home orginally listed for $3.9M, but then was suddenly reduced to $1.5M, then to $900K. When I performed my calculations, I knew the home should have been listed for at least $1.3M
I contacted the listing agent and he informed me that he was working with an outside mitigator to get a short sale done. He had no idea on how to work a short sale or what the outside company was doing.
Sure enough, it took the entire Summer for this thing to Close and it ended selling for $1.4M.
I don't know who these companies are that drastically reduce the price and then have the agents list them. They are not in charge of marketing or selling the homes, just with negotiating with the banks.
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