Q and A: Asking Price For Foreclosed Phoenix Homes
November 30, 2009
No matter the property, normal, short sale or lender owned the asking price does not always reflect the market price despite the requirements of the owners.
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Q. Are the asking prices for foreclosed Phoenix home the price for which the bank wants to sell?
A. Price is always negotiable, in so far as the parties to the transaction and the market allow and accept it.
Pricing a home is very difficult, especially if the condition is not the best as it should be. There are so many factors that affect price that it becomes an educated guess at best. Who truly established the price is the market place.
It does not matter who the seller is: they need to adhere to
market forces or they will lose: not sell. So the price that foreclosed
homes are on the market is approximately at which they want to sell it,
unless they are using other strategies, like pricing low to generate
lots of offers which will raise the price.
Sometimes the homes is
in so much demand that it generates offers well above asking price and
above every-ones comfort level: that means that some buyers get so
excited they will bid up the property to 10,20,30% over market value and
that does not make sense, that is a sure transaction to fail and banks
know it.
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 | Other posts in the Q and A series. |
| Questions and Answers on some common and uncommon topics |
| http://www.phoenixmarkettrends.com/topics/q+and+a |
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