Upcoming Foreclosures

How much influence do listing agents have on REO/foreclosure property list prices?

DH and I found a house we love, but it's not on the market yet. Our realtor showed it to us because it's a property she is getting in a couple weeks. Its owned by Freddie Mac, and it's the best foreclosure I have seen - it's move in condition. I asked if it would even be in our price range (I was sure it wouldn't be) and she said it shouldn't be any more than $60k. She said she needs to find comps in the neighborhood to support a price and she was positive there weren't any to support a price of more than $60k. We were very excited, so when we went back home I researched the house. It foreclosed for $102k in Jan. 2010, and the previous owner had it on the market last year at a list price of $120k. My question is, how much weight does the listing agent's opinion have in the bank setting a list price? I was thinking about them wanting a bidding war, but this is unheard of in my area - it literally never happens.

Public Comments

1. If they buy her comps it can have a good amount of weight but they will most often have an appraiser at least do a drive by appraisal. BPO's are often only done buy the Broker who ends up listing it and the banks check and balance if you will comes from the non biased appraiser who charges much less than the standard appraisal fee.
2. If it is that nice there is a good chance that other buyers will offer the asking price or more for the property. It is not uncommon for buyers to get into a bidding war when the property is under priced in the market. Generally speaking the lender will pay different agents to give their "brokers price opinion" of what the property is worth. I would think that since you are working with the listing agent you might have some advantage in buying the property. Ask you agent what she thinks you should offer on the property. Don't be surprised if it is over the asking price. If you buy it she will make a larger commission vs. if another agent brings in the winner offer so it is in her best interest if your are the winning buyer....it's much like a auction but the auctioneer wants you to be the successful bidder. And no the bank never hires an appraiser to do a drive by appraisal. They won't pay a $300 appraisal fee for that, but rather pay one or two agents $50-$75 from different offices to do a brokers price opinion.