The Appraisals we’ve recently conducted for sales transactions at WalshStreet Appraisals (www.WalshStreetAppraisals.net) has uncovered some misleading practices going on with list prices of single family homes in Los Angeles.
List prices are as high as 35% above actual sales prices in some areas. Normally, we see list prices at 15% or less, above sale price. This can be attributable to a lot of things, agents wanting to stay competitive with every other inflated list price, agents not sure what to list the property for and influenced by low market inventory and high demand or agents looking for higher commissions. Whatever the case, buyers (www.WalshStreet.net/buyers) need to be aware of this. This misleading practice was just in the news the other day concerning retail stores. Present the property as being way beyond what it’s worth, then substantially reduce the price and make it appear that the buyer is not only getting a great deal, but he’s buying at a discount. This coupled with the fact that interest rates are beginning to rise and the summer high cycle of real estate will soon be over, a buyer could easily wind up fifty feet underwater!
Chief Appraiser / Realtor / Analyst / Investor