foreclosures propping up prices

[SD Realtor]

I guess I don’t take this to be much of a revelation. When a home goes to a trustee sale the second is generally wiped out. Even in a short sale the agreement by both lenders to approve a short (if there were 2 mortgages) usually the case will be a token award of a thousand bucks to the second, while the first gets the rest.

In the trustee sales the home usually conveys back to the lender for the first amount. Then the pricing of the home when it is put on the market is determined by a BPO (usually done by a broker selected by the lender) with an appraisal. Then the home gets put on the market.

The important thing will be how long the home sits on the market when it is an REO. As we saw in more distressed areas they sit longer until the lender gets his finger out of his nose and prices it more aggressively.

SD Realtor

[cr]

The LISTED prices may be propped up, but are they selling?

A lot of people get bent when a house is over-priced but that doesn’t mean it’s going to sell.

Patience my friend. If you think it’s overpriced but want to buy, offer less. If they say, no walk away.

If foreclsoures are able to keep prices artificially high, it will only lead to a more significant drop the month or two after we hear the NAR celebrate and say “the worst is over, if you didn’t buy last month you’ll never see these prices again.” Until the next month when they’re even lower.

[cr]

The LISTED prices may be propped up, but are they selling?

A lot of people get bent when a house is over-priced but that doesn’t mean it’s going to sell.

Patience my friend. If you think it’s overpriced but want to buy, offer less. If they say, no walk away.

If foreclsoures are able to keep prices artificially high, it will only lead to a more significant drop the month or two after we hear the NAR celebrate and say “the worst is over, if you didn’t buy last month you’ll never see these prices again.” Until the next month when they’re even lower.

[cr]

The LISTED prices may be propped up, but are they selling?

A lot of people get bent when a house is over-priced but that doesn’t mean it’s going to sell.

Patience my friend. If you think it’s overpriced but want to buy, offer less. If they say, no walk away.

If foreclsoures are able to keep prices artificially high, it will only lead to a more significant drop the month or two after we hear the NAR celebrate and say “the worst is over, if you didn’t buy last month you’ll never see these prices again.” Until the next month when they’re even lower.

[cr]

The LISTED prices may be propped up, but are they selling?

A lot of people get bent when a house is over-priced but that doesn’t mean it’s going to sell.

Patience my friend. If you think it’s overpriced but want to buy, offer less. If they say, no walk away.

If foreclsoures are able to keep prices artificially high, it will only lead to a more significant drop the month or two after we hear the NAR celebrate and say “the worst is over, if you didn’t buy last month you’ll never see these prices again.” Until the next month when they’re even lower.

[cr]

The LISTED prices may be propped up, but are they selling?

A lot of people get bent when a house is over-priced but that doesn’t mean it’s going to sell.

Patience my friend. If you think it’s overpriced but want to buy, offer less. If they say, no walk away.

If foreclsoures are able to keep prices artificially high, it will only lead to a more significant drop the month or two after we hear the NAR celebrate and say “the worst is over, if you didn’t buy last month you’ll never see these prices again.” Until the next month when they’re even lower.

[bonfire]

Forclosures listed as “sales” in statistics, make people think that houses are still “selling”. Since everyone knows that foreclosures are at a record number, it makes it seem that there are a lot more sales, at higher prices, than is actually taking place. This makes people more reluctant to lower prices, in order to sell their own houses. It slows down the correction that is needed to get to the bottom. Is there a way to adjust the sales figures to reflect actual sales, and eliminate the foreclosures which skew to the positive?

[bonfire]

Forclosures listed as “sales” in statistics, make people think that houses are still “selling”. Since everyone knows that foreclosures are at a record number, it makes it seem that there are a lot more sales, at higher prices, than is actually taking place. This makes people more reluctant to lower prices, in order to sell their own houses. It slows down the correction that is needed to get to the bottom. Is there a way to adjust the sales figures to reflect actual sales, and eliminate the foreclosures which skew to the positive?

[bonfire]

Forclosures listed as “sales” in statistics, make people think that houses are still “selling”. Since everyone knows that foreclosures are at a record number, it makes it seem that there are a lot more sales, at higher prices, than is actually taking place. This makes people more reluctant to lower prices, in order to sell their own houses. It slows down the correction that is needed to get to the bottom. Is there a way to adjust the sales figures to reflect actual sales, and eliminate the foreclosures which skew to the positive?

[bonfire]

Forclosures listed as “sales” in statistics, make people think that houses are still “selling”. Since everyone knows that foreclosures are at a record number, it makes it seem that there are a lot more sales, at higher prices, than is actually taking place. This makes people more reluctant to lower prices, in order to sell their own houses. It slows down the correction that is needed to get to the bottom. Is there a way to adjust the sales figures to reflect actual sales, and eliminate the foreclosures which skew to the positive?

[bonfire]

Forclosures listed as “sales” in statistics, make people think that houses are still “selling”. Since everyone knows that foreclosures are at a record number, it makes it seem that there are a lot more sales, at higher prices, than is actually taking place. This makes people more reluctant to lower prices, in order to sell their own houses. It slows down the correction that is needed to get to the bottom. Is there a way to adjust the sales figures to reflect actual sales, and eliminate the foreclosures which skew to the positive?

[Author]

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