I love over priced short sales - from the buyer's agent perspective.
Isn't it funny how one $8000 price adjustment on a $200,000 short sale listing can create a frenzy and multiple offers? I have found that overpriced short sales are a great opportunity for the buyer's agent that understands the short sale process. If a short sale is listed for $200,000 and the comps are $160,000, one can offer $160,000 and educate the listing agent and seller with the comps. I have had great success with this and wanted to share this with the rest of you. These short sales stay under the radar and can present fantastic buying opportunities. Let me know if anyone else has had success with this strategy. To sum it up, a high listing price will create less competition and the ability to secure a good deal. The future BPO is the basis of our offer, not the list price or amount owed. I understand that a high listing price may show the agents lack of knowledge but we can also help coach the agent on how to successfully close a short sale.
Clayton Bonjean, Broker, MBA, Short Sale Super Star, CDPE
Clayton Bonjean, Broker, MBA, Short Sale Super Star, CDPE
Replies to This Discussion
-
Permalink Reply by Bryant Tutas on
-
Clayton. When working with buyers this can certainly be a good strategy. I just closed on a property last month at $170,000 that was priced at $229,000. All the homes that appealed to my buyer that were in his price range were being sold with multiple offers. We lost out on about a half a dozen of them.
So we changed our strategy and instead of shopping price we just shopped for what he wanted. Then we made offers at our price. We got his house on the 2nd try.
It helps to be creative in this market.
-
Permalink Reply by Sharon Simms on
-
Clayton - then there's the opposite situation - a listing agent lists a home far below the comps, does get multiple offers, but many agents don't alert their buyer that the odds of getting the home at this unsubstantiated price are very low.
-
Permalink Reply by Dianne Hicks on
-
Great stratagy, love thinking out of the box. I also love tracking down short sales that just lost their buyer, less waiting time.I just find out what the previous buyer had submitted and try to match it for ease of approval.
-
Permalink Reply by Clayton Bonjean on
-
Dianne,
I agree, the "buyer walked" short sales are great. Recently, I had one close in 3 weeks with Wells Fargo. We matched the old HUD, and this worked. This was definitely my easiest short sale. Great advice.
Clayton
Dianne Hicks said:Great stratagy, love thinking out of the box. I also love tracking down short sales that just lost their buyer, less waiting time.I just find out what the previous buyer had submitted and try to match it for ease of approval.
-
Permalink Reply by Sherry Siegel on
-
How do you obtain that information, since it should be privileged? Truly, I am curious about that.
Clayton Bonjean said:Dianne,
I agree, the "buyer walked" short sales are great. Recently, I had one close in 3 weeks with Wells Fargo. We matched the old HUD, and this worked. This was definitely my easiest short sale. Great advice.
Clayton
Dianne Hicks said:Great stratagy, love thinking out of the box. I also love tracking down short sales that just lost their buyer, less waiting time.I just find out what the previous buyer had submitted and try to match it for ease of approval.
-
-
Sherry,
RE: How to find out if the previous buyer walked?
In our area, many times you will see wording that the "previous buyer walked" in the agent notes. Sometimes you can find out when you call about a short sale listing. I try to call all short sale listing agents and inquire about things like:
1. Who is the lender? Make sure it is not BofA - LOL
2. Is there a second?
3. Any current offers?
4. Does the seller really have a hardship?
This is when you find out if there has been another buyer that walked. I try to call before showing but always call before submitting an offer.
Good luck.
Clayton
Sherry Siegel said:How do you obtain that information, since it should be privileged? Truly, I am curious about that.
Clayton Bonjean said:Dianne,
I agree, the "buyer walked" short sales are great. Recently, I had one close in 3 weeks with Wells Fargo. We matched the old HUD, and this worked. This was definitely my easiest short sale. Great advice.
Clayton
Dianne Hicks said:Great stratagy, love thinking out of the box. I also love tracking down short sales that just lost their buyer, less waiting time.I just find out what the previous buyer had submitted and try to match it for ease of approval.
-
-
Over priced short sales can become somewhat of a pocket listing for the listing agent. But I would rather deal with an overpriced short, than an underpriced that will just irriate buyers when the bank counters higher than list.
Some agents do that to generate a lot of buyer interest. A little unethical, don't you think?
-
-
Joe,
I have only seen one or two of the intentional underpriced short sale listings lately. I think our realtors (Destin, FL) are realizing that they are bad news. They typically fall apart when the bank counters, and they damage other buyer's perception of value/price. This sort of activity can damage a market. Perfect example: Realtor A has a contract on Condo Project A then realtor B lists a short sale in Condo Project A at 20% below value. Shortly after, Realtor A's buyer finds the under priced short sale on Trulia and backs out of the contract because he feels he is over paying.
I think unethical is a nice way to put it...
Joe Murphy said:Over priced short sales can become somewhat of a pocket listing for the listing agent. But I would rather deal with an overpriced short, than an underpriced that will just irriate buyers when the bank counters higher than list.
Some agents do that to generate a lot of buyer interest. A little unethical, don't you think?
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons