Price changes in Santa Clarita real estate, why do they happen?
In today’s real estate market, there can be various reasons for prices changes on residential real estate that has been marketed for sale. One of those reasons could simply be that the seller had priced their property too high in the beginning.
It could also be that the agent the seller hired over sold or bought their listing. Meaning, they said they could sell it higher and for more $$$ than their competition, that the seller also interviewed. This typically works with a real estate sellers “greed” gene. Tune in to our Sellers Blog – check out why we are Top Agents
Another factor to consider may have been the property was being sold as a short sale. It could be that the bank came back with an approval on that short sale, but the amount they were willing to sell the property for was more than the buyer could afford or qualify for. Our Foreclosure and Short Sale Blog
Price Reductions are typically not seen on a short sale, unless the buyer cancels out of the transaction because of the bank approving the short sale at a higher price than the buyer was willing to go or could go.
At that time, the real estate agent handling the short sale usually changes the MLS listing price to reflect the new “approved” price that was established by the bank.
Sometimes the agents place short sale onto the market for much less than their FMV – Fair Market Value. The reason for this could be “novice real estate agents” or it could be that the agent knows what they are doing and want to work the listing for leads generated by the misleading and “low pricing strategy”.
At the end of the day, the short sale is always subject to the Lender’s approval. The lender is the one that holds the note for the mortgage. In some cases with short sales – there can be multiple lenders involved.
Be safe, hire only experts to negotiate on your behalf as a short sale seller or as a real estate buyers. There is a lot to this and you don’t want to lose your A$$-ets…