Is this true? MLS list $95K, sold $50K in Houston, TX

10 Replies

I just saw this Redfin report this morning, 9919 Sage August Ln.

The house was listed in MLS for $95,000 and Redfin reported that it was sold for $50,000; it is probably worth $150K. Is it possible in the current Houston market? Somebody must have type the sale number wrong.

It was on the market for almost 9mo and it was a short sale.  So my guess is the home owner was minimally cooperative through the process.

Looking at the tiny 5 pictures they posted the house needs updating, and its a large house, so $50k sounds about right.

There are deals on the MLS in Houston, they are just few and far between.

@Sam Craven Thank you for your reply.

Wow!!! I did not know short sales could go this low. I don't mind waiting 6-9 months if I can get a house at that price.

@Nate Paoinchantara You are right. The bank has the last word on approving, or not, the "ridiculous" offer.

John the key on short sales is to NOT have your earnest money tied up into the deal until ALL lienholders have agreed in writing to the short sale.

Also a clause that you have the right BUT NOT the obligation to go through with the sale if it is finally approved. You want to walk if the price changes or if they took to much time and you no longer want do the deal.

A common stall tactic by banks is to wait  a few months if the market is rising and get  a higher approval price.

I do not focus on residential but saw this on a friends listing recently where the bank originally agreed to 110,000 but moved to 112,000 for final approval. 

Originally posted by @Joel Owens :

John the key on short sales is to NOT have your earnest money tied up into the deal until ALL lienholders have agreed in writing to the short sale.

Also a clause that you have the right BUT NOT the obligation to go through with the sale if it is finally approved. You want to walk if the price changes or if they took to much time and you no longer want do the deal.

A common stall tactic by banks is to wait  a few months if the market is rising and get  a higher approval price.

I do not focus on residential but saw this on a friends listing recently where the bank originally agreed to 110,000 but moved to 112,000 for final approval. 

Thank you Joel! Hopefully I can find an agent who knows how to write this up when I put my next offer on a short sale.

If the listing broker is good they will push back on this and try  to tie you up.

If the earnest money is tied up try to make it a tiny amount like a couple hundred or something.

I let listing brokers and sellers know I am not waiting around on pins and needles to see what they do. Tons of properties out there.

Originally posted by @Joel Owens :

Tons of properties out there.

I could not find any good deals since September, or they were gone before I noticed them.

Maybe I am not working with the right agent... or I am not looking hard enough... or it's just me who cannot distinguish a good deal when it's in front of me until it's gone.

@John T. The MLS is a tough place to source deals right now. Like i said it can be done but its not easy. We have a team that only focuses on the MLS to find properties.

You might want to reach out to wholesalers in houston and let them know what you are looking for, or it might be time to fire up your own marketing.

Plenty of deals out there, just takes work to get them.

Originally posted by @John Truong :
Originally posted by @Joel Owens:

Tons of properties out there.

I could not find any good deals since September, or they were gone before I noticed them.

Maybe I am not working with the right agent... or I am not looking hard enough... or it's just me who cannot distinguish a good deal when it's in front of me until it's gone.

in my market here in Tampa, FL, there just isn't a lot of inventory for starters. Add to that that investors have already been buying the great deals for the past 2-3 years. REO's were hitting the market that were essentially great houses in near perfect condition and selling for 100k . Now the same 3/2/2 is in need of major work and listed at 150k and some of them are still selling for that price. Man how I wish I was in the biz and had the money 3 years ago. Some people are going to make out REALLY WELL in the Tampa market. Rents are super duper strong here too so they can get TONS of cashflow and appreciation over the coming years.

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