If you are currently one of the many buyers looking to snatch up a good deal in the Orlando real estate market, then you might be wondering about the pricing of these properties. Thanks in large part to the mortgage crisis, prices are no longer based just on comparable sales (although, they do mostly start at this point) the actual asking price can vary largely based on whether the home for sale is a short sale, a bank owned, or a private seller.
A short sale occurs when the actual value of the home is less than the current mortgage. In this case the homeowner negotiates with the bank a price that seems fair for the market/neighborhood. Often the end result is an asking price right around true market value. Of course the asking price is always negotiable, but it is important to remember that your final offer will be presented to the bank, and the decision to approve the sale is in their hands.
A bank owned home is typically listed with an asking price below market value. The bank does this for a couple of reasons. One of the main reasons, is that they are motivated. They have already taken a loss on the home’s mortgage and everyday it sits on the market they lose more money. Secondly, they know that pricing it aggressively, or below market value, will generate more potential buyers and in return more offers. Keep in mind that this strategy can result in bidding wars as well as in a higher actual selling price.
A property that is being sold directly from the home’s owner is generally listed just a bit above market value. This is done to leave some room for negotiation as well as to give the seller the funds needed to close. These “standard” sales are usually the quickest and simplest way to buy a home, often having closings scheduled for just 30 days after the offer is accepted. When looking for a home that is move in ready or can close the fastest with the least headaches, these are the homes to look for.
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