Kevin and Fred, the leaders of Group 46:10, Arizona’s foremost short sale team, are chatting today about pricing and listing. Before you shut the video off because you already recognize how to list and price, hear them out. Depending on your market, you may not be experiencing the similar things as Kevin and Fred are in Scottsdale. As a lot of of you know, the deadline for taking advantage of the tax credit has passed. What we are seeing right now in the market is a modest bit less motivation from home buyers and residence owners. The inventory is beginning to increase and that normally leads to prices going down. When you notice that trend, you tend to have more disagreements with lenders concerning the value of properties.
There are a lot of of the similar obstacles in 2010 that we had in 2008. Lenders love to look at sold comparisons. Yet, if you want to deal with the variation in the market you need to compare values with active and pending listings. Price yourself in advance of the market if you want to sell the residence.
At present, the BPO’s are coming back higher than what they ought to be in Kevin and Fred’s opinions. There have been conversations with Chase bank where they have upped the BPO price because they disagree with the BPO agent’s number.
It is essential to appreciate that there will be more BPO problems in 2010. Other parts of the nation may not experience these problems if your market has only depreciated 10-15%. However, in the Phoenix real estate market, with depreciation levels approaching 60-70% in some instances, there will be BPO issues.
The bank will perhaps make some errors and foreclose on some houses. Don’t be surprised if it takes them a while to correct their own practices through this transformation in the market.
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
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