I had a client contact me recently about a bank-owned property. The description in the MLS said “sold for 1,000,000 in 2006, and it was now listed in the $530,000 range, so is this a deal? Not so much! The property was part of a mortgage fraud scam, and should have never sold for the big bucks! The house needed $150K worth of work and in premium condition would likely be in the $600K range.
Another example; a property listed at $120K needing $100K worth of work, worth $275K in good shape; sold for $175K to a cash buyer who was among 30 bidders! Had the property been listed at $175K to begin with, it never would have sold for that much money!
Welcome to the wild, wild west of Real Estate – these are strange times we’re living. As a buyer, there are opportunities, yes, but make sure you know what you’re getting into before biting the bullet.
As a seller, understand the strategies of your competition. Understand your given market, so you can sell for top dollar.
Both buyers and sellers should understand that the list price really means nothing more than a marketing strategy in some cases..