What to do when BoA Coop SS wants to overprice the listing?

I currently have a BoA coop SS right now with REDC, I had the property listed before at $190k, which I believe the FMV is somewhere between $180k - $190k, I got decent amount of showings but no offer. We recently was contact by REDC to represent BoA to do a Coop SS, I thought this would be smooth and fast. But when they request a list price of $225k, I tried to reason and let the rep know what had happen before and why I don't think overpricing it will bring us an offer now. She said the only way she can lower the list price is to have us do an appraisal and she can submit it and HOPES the investor would consider. I still get some showings now but still no offer! The feedback from the buyer's agent is that the buyers doesn't even bother putting it in because the expectation of value is so wide apart the buyers not even bother putting in FMV offer. My question then is, who will pay for the appraisal? The owner won't, he has no money and not planning to put any more into a house he is going to lose, the rep said the bank won't pay for that already. I don't consider doing it since there is still a chance the investor will not consider it. Should I be thinking about this? I had tried asking:

If there were other ways to go around this and get a BPO done or an appraisal done by the bank?

How did the investor come up with that list price?

If I get an offer at 180-190, would the investor entertain them?

When is the price reduction coming and how much?

All of these questions has been ignored, I don't know what else to do. I have a feeling I will be sitting on this property for another 3-4 months, given that price reduction is $10k each 30ish days, before I will see an offer come. This is such a waste of time and who knows by then if the property is even worth that much. Anyone got any suggestion? I really appreciate it.

To update on this situation, here is an email I sent to the Coop negotiator on Thursday but so far have not heard from yet:

Negotiator: "The BPO is 225K and it's good until 12/25 then we will order a new one. As long as the Marketing period doesn't exceed 120 days. If it does the Short Sale can be cancelled."

Me: "Was the BPO an Exterior or an Interior? Because the interior of the house will need some fixing, espcially in the kitchen, and the the owner has illegally altered about 75% of downstair level. If it was an Ext, can we please order an Interior BPO to more accurately value the property? Also, I thought you said at one time that there will be price reduction after certain amount of days? Or we will be at $225K until 12/25? If no reduction schedule is built in, could we just cancel the Coop SS now and list it regularly? Do my Seller have to go through with this Coop SS? Or do they have a choice to just do a regular SS? I am sorry, but the way this Coop SS is lay out, I can see that there is a good chance we will be at this same stage until 12/25. How do you expect to get any offer at $225K, when you know I had the property listed for over a month at $190K and never received an offer? I feel, and so does my client, that this is a waste of time and unfair. My client could be foreclosed on any time now and I do not see any benefit for them to be in this Coop SS. Also, I have follow up with a number of agents who showed the listing and they said that their client thinks it is TOO high and does not bother with putting in an offer because the bank's expection is TOO far apart from the real value of the property. I have also heard a rumor from a few agents that they think that one of the neighbor is a drug dealer, therefore, will not recommend their client to put in an offer. That fact right now, no matter is true or not, will devalue the property very deeply, if not drives Buyers away. Add that to the overpriced expectation and we are just wasting our time with this Coop SS. I have no proof of the drug dealer rumor, nor will the agents that told me can produce the proof, but that is not a rumor you want to have associated with a property you are trying to sell. Please advise, thank you."

Could anyone tell me if my client has the choice to leave the Coop SS without any consequences? At this point, I don't see a chance of any offer coming in.

Bryant - today marks the 1 month the property is listed with no discussion of a price reduction.

Am I being to hasty? I just feel as exactly as what I entailed in my response to the negotiator... this is a waste of time...

Replies

Trong Dang October 22, 2012 at 8:52am

To update on this situation, here is an email I sent to the Coop negotiator on Thursday but so far have not heard from yet:

Negotiator: "The BPO is 225K and it's good until 12/25 then we will order a new one. As long as the Marketing period doesn't exceed 120 days. If it does the Short Sale can be cancelled."

Me: "Was the BPO an Exterior or an Interior? Because the interior of the house will need some fixing, espcially in the kitchen, and the the owner has illegally altered about 75% of downstair level. If it was an Ext, can we please order an Interior BPO to more accurately value the property? Also, I thought you said at one time that there will be price reduction after certain amount of days? Or we will be at $225K until 12/25? If no reduction schedule is built in, could we just cancel the Coop SS now and list it regularly? Do my Seller have to go through with this Coop SS? Or do they have a choice to just do a regular SS? I am sorry, but the way this Coop SS is lay out, I can see that there is a good chance we will be at this same stage until 12/25. How do you expect to get any offer at $225K, when you know I had the property listed for over a month at $190K and never received an offer? I feel, and so does my client, that this is a waste of time and unfair. My client could be foreclosed on any time now and I do not see any benefit for them to be in this Coop SS. Also, I have follow up with a number of agents who showed the listing and they said that their client thinks it is TOO high and does not bother with putting in an offer because the bank's expection is TOO far apart from the real value of the property. I have also heard a rumor from a few agents that they think that one of the neighbor is a drug dealer, therefore, will not recommend their client to put in an offer. That fact right now, no matter is true or not, will devalue the property very deeply, if not drives Buyers away. Add that to the overpriced expectation and we are just wasting our time with this Coop SS. I have no proof of the drug dealer rumor, nor will the agents that told me can produce the proof, but that is not a rumor you want to have associated with a property you are trying to sell. Please advise, thank you."

Could anyone tell me if my client has the choice to leave the Coop SS without any consequences? At this point, I don't see a chance of any offer coming in.

Bryant - today marks the 1 month the property is listed with no discussion of a price reduction.

Am I being to hasty? I just feel as exactly as what I entailed in my response to the negotiator... this is a waste of time...
Bryant Tutas October 13, 2012 at 12:54am

List it and get it on the market. BofA (REDC) will very aggressively drop the price every 3 weeks or so. If they don't send them a message and ask for a reduction. I listed one at $145,000 and they had it down to $87,500 in less than 60 days.
- Wendy Rulnick > Bryant Tutas October 13, 2012 at 3:48am
  
  Yes, they then normally proceed to under price it, with no market logic whatsoever.

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