Recently a client e mailed this question and I thought everyone can learn from it.

Question:  hi i was wondering what the sale prices lately compared to the list price. i just got pre approved and was trying to figure out whitch houses to look at thanks daniel 

 Answer:  Daniel, That's a good question! Usually a bank will set the price low and the home gets bid up 10-25K, depending on your price range. In the market currently banks list low. One banks rule of thumb is to list homes at 80% of the appraisal value. A bulk of the inventory comes on the market with a low price and are under contract within 1-10 days from coming on the market with multiple offers (this is why its very important to make an offer the first day it comes out. Bank sellers do this to attract attention to there home and to compete to get there assets sold quickly.

Some of the inventory is overpriced and you can usually tell by how long it has been on the market. Over 30 days and no recent price reductions the home is overpriced. Another indication that a home is overpriced is when its new to the market but comparable sales show a lower price, or condition of the property is not in line with comparable sales.

Once you get started on the process and start watching the inventory for the area you are interested in you will get a good understanding of the market. Its a case by case basis which I can help you with. What is your house criteria and price range you are trying to keep it under? I will send you some that are within that range and exclude ones that will get bid above.