The bank REO department is full of clowns.

5 Replies

For years I've been trying to figure out the pricing strategy of banks.  Will they reduce the price 5% per week?  10% per month?  Will they counter with a 3% reduction?  What is their strategy?  Surely large, sophisticated banks use some sort of calculation to get their inventory sold.

Today I got a counter-offer from a bank of $123405.  I give up.

Most banks aren't very good at pricing because they don't know the area and the real estate market.  Out here I've seen banks price properties way too low because they are basing the price off of what is owed not the value of the property.  By doing this they get flooded with over list price offers take the property off the market and then relist later closer to those offers.  I don't think they are doing this on purpose, but it makes me wonder.

They will use the tools at their fingertips, auto comps and appraisal, then move to listing agents and reporting.

There a rich banks, and poor ones, don’t assume it works in some logical model, because it don’t.

I know a bank that the founder, yes the founder, has to sign off on all loans on Friday at 1pm, they fax them down to his home the day off, and him and his board sit around and have a good old boy vote. It’s comical, but whatever.. it’s his money to oversee and do what he wants with.

Somedays they want it gone, someday they don’t care how long they hold onto it. 

BP wants long titles on posts, so the clown comment was all I could come up with.  My husband and I joked about offering $123456, but we chickened out because we were afraid the bank wouldn't take us seriously.  I guess we didn't have to worry!

The price is set based on an Appraisal or BPO.  They try to negotiate the highest price.  95-100% of list price looks best on their books.

Phil Z., Real Estate Agent in Connecticut (#REB.0789205)
203-936-7776

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