We generally don't post our listings on this Blog, but I thought this one was worth posting. This is a foreclosure that was listed for $600,000 just two years ago. The bank that owns it had us list it at $339,000, even though we believe a more realistic price is $225,000. Why the difference? Most banks use inexperienced, part-time agents to do Broker Price Opinions. The banks pay $50-75 for the work that takes 6-8 hours to do, as well as the expense of gas, auto and data services. Banks are relying on agents earning $5 an hour for price opinions. As a note of reference, we have come in within 10% of the final selling price on all of our Broker Price Opinions, but we never do them for $50-75. We charge $375 for a BPO when we do not get the listing. If we get the listing, the BPO is included.
This house still needs quite a bit of work, but eventually, the bank will lower the price until the phone starts ringing with showings. We have not received a single call since listing it yesterday. That's not good. For a well priced listing, we will receive 10-20 calls within hours of the listing hitting the MLS. But banks have their hands tied, and this one will not drop the price for 30 days. To show you how that can snowball, but the time they decide to drop the price, the price I set of $225,000 will most likely be even less. Then it becomes a game of catch-up, and the banks always lose. Eventually, this house will sell for $225,000 or less, but it might take the bank months to realize . . . other brokers are not showing the house becuase it is overpriced for the market. Sadly, by the time the bank finishes all the work needed on this house, and then pays all the maintenance and selling costs, their loss will exceed 80% of the mortgage. So for those of you thinking we've seen the bottom of the Financial Crisis, think again.
Trade Tip - Watch Fifth Third Bank, Wells Fargo, Bank of America, Suntrust and Regions as banks that still have a lot of trouble to admit. I'd like to include JP Morgan in that group, but Jamie Dimon is one of Obama's puppeteers.
In any event, this is a great home in an absolutely magnificent area. So here goes . . .
Step into Old Florida Charm. Beautiful and serene Rustic Hills area with old growth oak and banyan trees. This 2 Story, CBS pool home, with a Key West metal roof has 5 bedrooms, 3 bathrooms and a wonderful open-air front porch. The kitchen is an open plan into the family room. Wood floor in main area. Master bedroom includes a sitting area and office/study. Master closet is HUGE! Master closet is HUGE! Master bedroom terrace offers a scenic view. Great private pool with wooden deck. Palm City A-Rated schools. Buyers MUST have solid pre-approval letter with only contingency for appraisal and inspection. All other verification must be completed. Easy access to 95 and Turnpike. Minutes to Martin County's magnificent beaches.
Buy this home from Morgan Florida Real Estate and you receive a two year Home Warranty from American Home Shield and 10% Lowe's Coupon on appliances and upgrades.
Priced at $339,000
Call today for showing - Mike (772) 260-5448
Mike Morgan, J.D., CRS, GRI, SRES
Morgan Florida Real Estate Team
Visit our website www.FloridaHomes.PRO
Call Today - 772-260-5448
Email - Mike@FloridaHomes.PRO
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