Are we in a declining market or am I the only one to have this feeling?
Here is my BPO litany: “Declining market often indicated by similar property presently
listed at lower value than most recently sold similar property!” Should we worry to explain the declining market? Can we blame some facts as lack of buyers, lack of available financing, present economy, what did or did not do the present administration? All the above? …
May be but I am coming with an additional scenario and I will be curious to know if anyone is experiencing similar conditions. REO listings… Those that all agents are dreaming to have in their portfolio and some are working so hard to just get one.
My location is unique in Marin County North of San Francisco with median SFR as 794K
and 400K for condo. This morning I have pulled up from the MLS this property located in Tiburon as one of the most desirable site in the nation and listed at $ 950K with
MLS remarks as “This property won’t last long, Hurry before it’s sold.”
Additional researches reveal 201 DOM and 7 prices reduction, no open house and
listing agent located at hundred of mile away…. 40% or more of the REO listings are with agents located within another County. I already have commented on this topic and
it does not seem to improve at all. Actually, I believe it is deteriorating.
I have completed a large amount of BPO for any reasons affecting the loan, before the auction, after the auction and when the listing is not sold and finally expired.
Valuation companies are asking in their BPO form why the property did not sell
and expired by now. My answer is a question as why this $ 800k property never had a Broker Open House neither an open house??? Answer is because the listing agent is located more than one hour from site and apparently there is no reason for this agent to drive one hour each way to market this property BECAUSE he/she has a relationship with asset manager.
I have heard an agent in my office who is not involved with REO business and
talking to is buyer client about a new REO listing, advising his client to wait for price reduction since the property was listed by one of these REO agent from other County! (LOL).
Now here is the bad part: this REO property not properly marketed will be sold after multiple price reduction and will be used as comps for BPO and appraisal lowering again the property value for any future sale in the close proximity. The present administration and other silly excuses are not the only reason of this declining market.
Each listing I have and especially REO has a BOH and open house until the property is
in well established contract. I have had BOH ranging from 30 to 130 agents.
This is actually very important at first because it eases the process to bring their clients,
and almost more valuable because I know from that morning if the property is well priced or not. Does it mean I won’t accept listing from other County?
Sure I did and I will but I commit myself to do the extra driving as much as I can to sell the asset at is best value. I have driven on a rainy Sunday for open house on a one bedroom condo at less than $ 100K. This is what I owe to the seller as my fiduciary duty. I should comment as well as the above County as Sonoma is accessible by freeway with involve just a commute while East Bay or other Peninsula Counties are separated by the San Francisco Bay which involve crossing a bridge with toll and all traffic issues. They are not really just another County but more a different world. I have shared this with some asset manager and their answer is they are not doing such business as their agents are doing good business and are located within 10 miles from the property. Sure, …10 miles can be on the other side of the bridge which is a different world !!!! May be not doing this kind of business but MLS results are indicating the reality.
Do I point out on other agents ?
Not really, numbers are here in the MLS available to anyone and also I am taking care of my business but also of asset owned and each property owner from the neighborhood.
This REO listing had multiple offers above the listing price and equal to my BPO.
The appraisal value and sold price was concluded at below the listing price because
two REO properties were used as comparable and sold at low value due
lack of marketing for the same reasons explained above.
It affected my sale which now will affect other future sale. Voila!
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