Wednesday, December 11, 2013

Optimistic Bankers

US temps 12-11-2103
I made a quick mention in the last post about the trend in asking prices for foreclosures. The recent trend has been towards higher and less aggressive asking prices. In the not too distant past, most foreclosures in the Cocoa Beach and Cape Canaveral market would have multiple offers within the first few days after hitting the MLS and would usually sell for full or above asking price. That is no longer true. The buyers have given a collective Ho Hum to the banks' recent optimistic prices and many attractive foreclosure properties are not getting quick offers. Of the 23 bank-owned condos on the MLS this morning, 11 have been listed for longer than a month and 9 have reduced the original asking price, one by 24%, still without a sale. Five of the 7 short sales currently active have reduced their original price.

Our takeaway: just because it's a distressed sale doesn't mean the asking price is a deal. Know the current value and offer accordingly. As always, knowledge is power.

""If you can't fix it with a hammer, you've got an electrical problem." ___unknown