Short Sale Pricing Strategy

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darrenito1234_IHB

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Maybe some of you on here can help me understand a few things about short sale pricing. I have been watching the condos in Quail Hill for some time now and recently have seen a dramatic price cut in one of the units I've been looking at today.



Just some background, all of these condos are short sales, with the same floor plan.



<a href="http://www.redfin.com/CA/Irvine/59-Reunion-92603/home/5953644">59 Reunion</a> $479,000

<a href="http://www.redfin.com/CA/Irvine/75-Duet-92603/home/5953549">75 Duet</a> $469,000

<a href="http://www.redfin.com/CA/Irvine/Undisclosed-address-92603/home/5982099">99 Duet</a> $399,900 (Price was lowered today)



Since these are all short sales do you think that the agents on 99 Duet are looking for multiple offers and this property will close around the same price as the other two???



Just curious about the strategy by the seller/listing agent.



Thanks for the input!
 
[quote author="darrenito1234" date=1253158165]Maybe some of you on here can help me understand a few things about short sale pricing. I have been watching the condos in Quail Hill for some time now and recently have seen a dramatic price cut in one of the units I've been looking at today.



Just some background, all of these condos are short sales, with the same floor plan.



59 Reunion $479,000

75 Duet $469,000

99 Duet $399,900 (Price was lowered today)



Since these are all short sales do you think that the agents on 99 Duet are looking for multiple offers and this property will close around the same price as the other two???



Just curious about the strategy by the seller/listing agent.



Thanks for the help!</blockquote>
The strategy that most listing agents use for short sale listings is to list the property so low that it gets multiple offers ASAP. The listing agent needs only one offer in order to get the ball rolling in terms of submitting the short sale package over to the bank/s. The attached condo market in Quail Hill is taking a bit of a beating...the condo that I sold back in Oct. 2008 for $620k had 2 sales of the exact same floor plan see for $554k and $550k or about $300/sf. Buyers will tend to offer with the sale comp range.
 
[quote author="USCTrojanCPA" date=1253158444][quote author="darrenito1234" date=1253158165]Maybe some of you on here can help me understand a few things about short sale pricing. I have been watching the condos in Quail Hill for some time now and recently have seen a dramatic price cut in one of the units I've been looking at today.



Just some background, all of these condos are short sales, with the same floor plan.



59 Reunion $479,000

75 Duet $469,000

99 Duet $399,900 (Price was lowered today)



Since these are all short sales do you think that the agents on 99 Duet are looking for multiple offers and this property will close around the same price as the other two???



Just curious about the strategy by the seller/listing agent.



Thanks for the help!</blockquote>
The strategy that most listing agents use for short sale listings is to list the property so low that it gets multiple offers ASAP. The listing agent needs only one offer in order to get the ball rolling in terms of submitting the short sale package over to the bank/s. The attached condo market in Quail Hill is taking a bit of a beating...the condo that I sold back in Oct. 2008 for $620k had 2 sales of the exact same floor plan see for $554k and $550k or about $300/sf. Buyers will tend to offer with the sale comp range.</blockquote>


The unit at 95 Duet (your plan) just closed for $595,000 ($20,000 over list) and $25,000 less than your sale.
 
[quote author="NewportSkipper" date=1253158617][quote author="USCTrojanCPA" date=1253158444][quote author="darrenito1234" date=1253158165]Maybe some of you on here can help me understand a few things about short sale pricing. I have been watching the condos in Quail Hill for some time now and recently have seen a dramatic price cut in one of the units I've been looking at today.



Just some background, all of these condos are short sales, with the same floor plan.



59 Reunion $479,000

75 Duet $469,000

99 Duet $399,900 (Price was lowered today)



Since these are all short sales do you think that the agents on 99 Duet are looking for multiple offers and this property will close around the same price as the other two???



Just curious about the strategy by the seller/listing agent.



Thanks for the help!</blockquote>
The strategy that most listing agents use for short sale listings is to list the property so low that it gets multiple offers ASAP. The listing agent needs only one offer in order to get the ball rolling in terms of submitting the short sale package over to the bank/s. The attached condo market in Quail Hill is taking a bit of a beating...the condo that I sold back in Oct. 2008 for $620k had 2 sales of the exact same floor plan see for $554k and $550k or about $300/sf. Buyers will tend to offer with the sale comp range.</blockquote>


The unit at 95 Duet (your plan) just closed for $595,000, or $25,000 less than your sale.</blockquote>
And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.
 
[quote author="USCTrojanCPA" date=1253159164][quote author="NewportSkipper" date=1253158617][quote author="USCTrojanCPA" date=1253158444][quote author="darrenito1234" date=1253158165]Maybe some of you on here can help me understand a few things about short sale pricing. I have been watching the condos in Quail Hill for some time now and recently have seen a dramatic price cut in one of the units I've been looking at today.



Just some background, all of these condos are short sales, with the same floor plan.



59 Reunion $479,000

75 Duet $469,000

99 Duet $399,900 (Price was lowered today)



Since these are all short sales do you think that the agents on 99 Duet are looking for multiple offers and this property will close around the same price as the other two???



Just curious about the strategy by the seller/listing agent.



Thanks for the help!</blockquote>
The strategy that most listing agents use for short sale listings is to list the property so low that it gets multiple offers ASAP. The listing agent needs only one offer in order to get the ball rolling in terms of submitting the short sale package over to the bank/s. The attached condo market in Quail Hill is taking a bit of a beating...the condo that I sold back in Oct. 2008 for $620k had 2 sales of the exact same floor plan see for $554k and $550k or about $300/sf. Buyers will tend to offer with the sale comp range.</blockquote>


The unit at 95 Duet (your plan) just closed for $595,000, or $25,000 less than your sale.</blockquote>
And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.</blockquote>


Guy, accept your floor plan just closed at $595,000 and be done with it.
 
[quote author="NewportSkipper" date=1253159528][quote author="USCTrojanCPA" date=1253159164]

And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.</blockquote>


Guy, accept your floor plan just closed at $595,000 and be done with it.</blockquote>


One out of 3, means the median is still $554k. BTW, when will 55 Stepping Stone realize it already has a new owner that bought it at the foreclosure auction?
 
[quote author="graphrix" date=1253161371][quote author="NewportSkipper" date=1253159528][quote author="USCTrojanCPA" date=1253159164]

And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.</blockquote>


Guy, accept your floor plan just closed at $595,000 and be done with it.</blockquote>


One out of 3, means the median is still $554k. BTW, when will 55 Stepping Stone realize it already has a new owner that bought it at the foreclosure auction?</blockquote>


Until the next sale. Hmm, never heard of a 3 sample median, but ok.
 
[quote author="NewportSkipper" date=1253159528][quote author="USCTrojanCPA" date=1253159164][quote author="NewportSkipper" date=1253158617][quote author="USCTrojanCPA" date=1253158444][quote author="darrenito1234" date=1253158165]Maybe some of you on here can help me understand a few things about short sale pricing. I have been watching the condos in Quail Hill for some time now and recently have seen a dramatic price cut in one of the units I've been looking at today.



Just some background, all of these condos are short sales, with the same floor plan.



59 Reunion $479,000

75 Duet $469,000

99 Duet $399,900 (Price was lowered today)



Since these are all short sales do you think that the agents on 99 Duet are looking for multiple offers and this property will close around the same price as the other two???



Just curious about the strategy by the seller/listing agent.



Thanks for the help!</blockquote>
The strategy that most listing agents use for short sale listings is to list the property so low that it gets multiple offers ASAP. The listing agent needs only one offer in order to get the ball rolling in terms of submitting the short sale package over to the bank/s. The attached condo market in Quail Hill is taking a bit of a beating...the condo that I sold back in Oct. 2008 for $620k had 2 sales of the exact same floor plan see for $554k and $550k or about $300/sf. Buyers will tend to offer with the sale comp range.</blockquote>


The unit at 95 Duet (your plan) just closed for $595,000, or $25,000 less than your sale.</blockquote>
And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.</blockquote>


Guy, accept your floor plan just closed at $595,000 and be done with it.</blockquote>
Until I see another closing at $595k...that closing will be an outlier in my mind. Even if you take the avg. instead of the median...it's $566k.
 
[quote author="graphrix" date=1253161371][quote author="NewportSkipper" date=1253159528][quote author="USCTrojanCPA" date=1253159164]

And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.</blockquote>


Guy, accept your floor plan just closed at $595,000 and be done with it.</blockquote>


One out of 3, means the median is still $554k. BTW, when will 55 Stepping Stone realize it already has a new owner that bought it at the foreclosure auction?</blockquote>
When someone makes that call...they better call the listing agent on 15505 Orchid too (was "pending"). haha
 
[quote author="NewportSkipper" date=1253162276][quote author="graphrix" date=1253161371][quote author="NewportSkipper" date=1253159528][quote author="USCTrojanCPA" date=1253159164]

And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.</blockquote>


Guy, accept your floor plan just closed at $595,000 and be done with it.</blockquote>


One out of 3, means the median is still $554k. BTW, when will 55 Stepping Stone realize it already has a new owner that bought it at the foreclosure auction?</blockquote>


Until the next sale. Hmm, never heard of a 3 sample median, but ok.</blockquote>


Ok, the average then is $566k. T-man still did well in getting out. I'm sure your one $595k comp will be an anomaly. Just watch...
 
[quote author="graphrix" date=1253165661][quote author="NewportSkipper" date=1253162276][quote author="graphrix" date=1253161371][quote author="NewportSkipper" date=1253159528][quote author="USCTrojanCPA" date=1253159164]

And 61 Reunion closed for $550k on 8/20/09 (with similar upgrades as my unit) and 61 Duet closed for $554k on 8/7/09...both about $70k less than my sale.</blockquote>


Guy, accept your floor plan just closed at $595,000 and be done with it.</blockquote>


One out of 3, means the median is still $554k. BTW, when will 55 Stepping Stone realize it already has a new owner that bought it at the foreclosure auction?</blockquote>


Until the next sale. Hmm, never heard of a 3 sample median, but ok.</blockquote>


Ok, the average then is $566k. T-man still did well in getting out. I'm sure your one $595k comp will be an anomaly. Just watch...</blockquote>


Oh, I'll watch.
 
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