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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Short sales accelerating price falls Posted by Rachel on April 12, 2008 at 11:45 AM In Reply to: Short sales accelerating price falls posted by Bob (CA) on April 12, 2008 at 11:21 AM : Ward, : Real estae agents that have seen their incomes drop are seeming to price homes that are short sales much less than their market values. The sellers appear to have no incentive to attempt to sell at the highest price in which the market will bear thus allowing the home to be priced at any level in order to just get an offer but this is really hurting the comps and other sellers and REO asset managers are using these artificially low prices as comps to price their new inventory. Lenders need to have some leverage in the short sale process to motivate the sellers of these homes to sell at the highest price such as the sellers having to sign a note for the differnce between the amount owed to the lender and the reduced amount received. If the seller was sharing in the loss in some way they probably would pay more attention to try to have the home more presentable, assist with showings and make sure the price was not radically under recent comps. Bob, With all do respect, I couldn't disagree with you more. The fact that RE agents income is less than previous years has no bearing on the pricing of short sale listings. RE agents are hired to sell homes and in this market selling short sales, (eventual REO's), is next to impossible. Most lenders won't accept a SS until there's an offer. The list price or the offer price doesn't (ever, in my experience) mean that's the price they will accept. Agents don't like to show SS's because they know their commission is going to be a lot lower than any other transaction plus the amount of time it takes for the bank to respond. It's a very frustrating process for both sellers, buyers and RE agents. What is sold recently in a neighborhood is setting the new pricing. There are a lot more homes coming as REO's so hang on. I understand your frustration but I think it's misplaced. Have a nice day, Rachel Follow Ups: Good rebuttal, Rachel CC in OC 7:01 PM, 04/19/08 (0) Re: Short sales accelerating price falls JK (the other JK) 4:26 PM, 04/12/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Real estae agents that have seen their incomes drop are seeming to price homes that are short sales much less than their market values. The sellers appear to have no incentive to attempt to sell at the highest price in which the market will bear thus allowing the home to be priced at any level in order to just get an offer but this is really hurting the comps and other sellers and REO asset managers are using these artificially low prices as comps to price their new inventory. Lenders need to have some leverage in the short sale process to motivate the sellers of these homes to sell at the highest price such as the sellers having to sign a note for the differnce between the amount owed to the lender and the reduced amount received. If the seller was sharing in the loss in some way they probably would pay more attention to try to have the home more presentable, assist with showings and make sure the price was not radically under recent comps. : Bob, : With all do respect, I couldn't disagree with you more. : The fact that RE agents income is less than previous years has no bearing on the pricing of short sale listings. : RE agents are hired to sell homes and in this market selling short sales, (eventual REO's), is next to impossible. : Most lenders won't accept a SS until there's an offer. The list price or the offer price doesn't (ever, in my experience) mean that's the price they will accept. : Agents don't like to show SS's because they know their commission is going to be a lot lower than any other transaction plus the amount of time it takes for the bank to respond. It's a very frustrating process for both sellers, buyers and RE agents. : What is sold recently in a neighborhood is setting the new pricing. : There are a lot more homes coming as REO's so hang on. : I understand your frustration but I think it's misplaced. : Have a nice day, : Rachel [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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