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2017-01-24 11:34:30
Lessons from a Bank Owned house
Banks are just like people. They give instructions that are sometimes confusing and make mistakes. When they do you should be positioned to take advantage of their mistake.
 
A few months ago a bank listed a property with an agent and I can only assume that the instructions were given to sell it quickly. As a result it was priced about $15,000 too low at $179,900. The house needed a lot of work, but with a repaired sales value of around $250,000 they were still too low.
 
After they received multiple offers in the first days of listing they raised their price from $179,900 to $183,500...then had an offer fail a few weeks later. They had either accepted a cash backup offer or got impatient because they ended up with a final sale price of $170,000 from a cash Buyer. My guess is that they started with a higher offer than the list price, but once that failed they accepted the 'Easy' offer and closed it out. A couple of takeaways:
  • First offers often fail
  • Being a back up offer is a REALLY good idea
  • Even though banks should always make logical decisions they still have failure points. Ultimately it is still people making decisions.
  • Careful pricing is wise. If you under price a property then try to make upward adjustments it nearly always backfires.
  • Be patient. It is not a good thing to sell a house in a day. It means the house was under-priced, often dramatically if you get multiple people who want to buy without even thinking about it.

 

 
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2017-01-24 11:34:30
Lessons from a Bank Owned house

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