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Old 01-08-2012, 08:19 PM
 
418 posts, read 1,315,999 times
Reputation: 149

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We have run into (expected) competition with homes in the neighborhood selling at much lower prices than one would expect as they were bought at unbelievable prices (out of a foreclosure) and are now back at prices higher than what they were purchased at (of course) but much lower than one would expect to list them (if they were individual owners as opposed to investment companies).

Question I have is - does it even make sense to try and compete? If yes, how would we be able to do that?

Or, would it be prudent to delist our property and wait it out till the other ones are sold?
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Old 01-08-2012, 09:18 PM
 
Location: Everywhere and Nowhere
14,131 posts, read 26,977,914 times
Reputation: 6824
What area are you talking about and what type of properties?
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Old 01-08-2012, 09:24 PM
 
Location: MID ATLANTIC
7,720 posts, read 18,468,511 times
Reputation: 8372
Quote:
Originally Posted by vauser View Post
We have run into (expected) competition with homes in the neighborhood selling at much lower prices than one would expect as they were bought at unbelievable prices (out of a foreclosure) and are now back at prices higher than what they were purchased at (of course) but much lower than one would expect to list them (if they were individual owners as opposed to investment companies).

Question I have is - does it even make sense to try and compete? If yes, how would we be able to do that?

Or, would it be prudent to delist our property and wait it out till the other ones are sold?
Unfortunately, those homes have become your home's comps the minute they sell. How much higher are you? 10%? 20%? More? It could be you may need to settle in for a while, it's hard to speak without knowing how many homes, what other sales are in the neighborhood. The other option would be (and what many are coming to terms with), forget getting the equity out of the home right now, and tap into another asset to purchase the move up home. Renting the current home will not be a problem in our area, and the negative will be minimal, if it exists. Many are rationalizing this by thinking they'll never be able to move up for so little, ever again.

You are describing everyone's nightmare, from sea to shining sea. We've (the DC area) has been luckier than the rest of the country. We're lucky - I know it doesn't feel that way, but it's way worse in other states.
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Old 01-08-2012, 09:44 PM
 
Location: Aldie, VA
199 posts, read 601,123 times
Reputation: 92
You need to do some research on those properties or have your realtor do it. Investment companies are still going to want to get as close to market value as they can. Sure they may be a little less to get them to move, but I would imagine they would still want to make their money.

If they were foreclosure properties, were they fixed up? Do they still need work to warrant the low price? Have your realtor go take a look and speak to the listing agents...they might give the scoop.
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Old 01-09-2012, 12:05 AM
 
3,164 posts, read 6,112,466 times
Reputation: 1264
Quote:
Originally Posted by vauser View Post
We have run into (expected) competition with homes in the neighborhood selling at much lower prices than one would expect as they were bought at unbelievable prices (out of a foreclosure) and are now back at prices higher than what they were purchased at (of course) but much lower than one would expect to list them (if they were individual owners as opposed to investment companies).

Question I have is - does it even make sense to try and compete? If yes, how would we be able to do that?

Or, would it be prudent to delist our property and wait it out till the other ones are sold?
I have not heard of this, but I can't imagine why an investor wouldn't sell the house at fair market value to maximize their profits.
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Old 01-09-2012, 06:08 AM
 
Location: Censorshipville...
2,661 posts, read 6,223,862 times
Reputation: 1543
Well they may be LISTING the homes for a lower price, but what they sell for is the important number. They may be listing low just to drum up traffic to the home to increase the chances of a bidding war.
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Old 01-09-2012, 06:23 AM
 
Location: Virginia
18,717 posts, read 26,792,420 times
Reputation: 42860
Quote:
Originally Posted by oneasterisk View Post
Well they may be LISTING the homes for a lower price, but what they sell for is the important number. They may be listing low just to drum up traffic to the home to increase the chances of a bidding war.
I think there's a lot of truth to this. Maybe you could try the same sort of strategy--list it at the lower price but then tell anyone who offers you that price that you have bids that are higher, and what are they willing to offer. It's a stupid game, I agree, but if you're having trouble getting people to see the house it might work.
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