Short Sale Pricing and How Leases Work
Short sale pricing is a funny thing. Most short sale listings are priced low to get a contract to take to the bank. There are short sale listings in Aviano that are overpriced which means more time on market before an offer arrives. But really it makes no difference because months down the line the bank/investor will counter back at somewhere
near fair market value. There is a perception that the advertised price on short sales is what you can get them for and that is not true. Banks/investors can and do counter back for close to fair market value. The
buyers lender will do the appraisal which comes in waaay low or high which causes all kind of scenarios to play out. As in pricing, make your offer or list price at close to fair market value to avoid hiccups down the
line. Hiccups that you may wait 6 months or longer for.
Leases work like this for the buyers agent: you get a percentage of the total lease value. So you write a 12 months lease at $2800 a month which has a value of $33,600. If the MLS listing says buyer broker compensation is 2% then you get $672. 3% is $1,008 and so on. I bring this up as Kathy and I had lunch recently with a dear friend who has been a Realtor since the '70's. We talked about leases and she declared she will not do them
anymore and most of the people she knows have taken a similar approach. It all comes down to time. With buyers that need lots of hand holding you may spend 15-20 hours on a transaction that may net you $600 or $900.
How much is your time worth and are there other activities that may make you more on a per hour basis? Many Realtors will do leases as favor to friends or in the hopes that someday way into the future these tenants may
become buyers. But is that a viable business model?
Tags: aviano, desert ridge, phoenix, real estate, villages, fireside, Arizona, short sale, foreclosure, Toll Brothers. Information supplied by MLS and deemed reliable but not guaranteed.
near fair market value. There is a perception that the advertised price on short sales is what you can get them for and that is not true. Banks/investors can and do counter back for close to fair market value. The
buyers lender will do the appraisal which comes in waaay low or high which causes all kind of scenarios to play out. As in pricing, make your offer or list price at close to fair market value to avoid hiccups down the
line. Hiccups that you may wait 6 months or longer for.
Leases work like this for the buyers agent: you get a percentage of the total lease value. So you write a 12 months lease at $2800 a month which has a value of $33,600. If the MLS listing says buyer broker compensation is 2% then you get $672. 3% is $1,008 and so on. I bring this up as Kathy and I had lunch recently with a dear friend who has been a Realtor since the '70's. We talked about leases and she declared she will not do them
anymore and most of the people she knows have taken a similar approach. It all comes down to time. With buyers that need lots of hand holding you may spend 15-20 hours on a transaction that may net you $600 or $900.
How much is your time worth and are there other activities that may make you more on a per hour basis? Many Realtors will do leases as favor to friends or in the hopes that someday way into the future these tenants may
become buyers. But is that a viable business model?
Tags: aviano, desert ridge, phoenix, real estate, villages, fireside, Arizona, short sale, foreclosure, Toll Brothers. Information supplied by MLS and deemed reliable but not guaranteed.
