Re:Savings and Loan Crisis 1980–1989
by ianai on Tuesday May 02, 2023 @05:17AM
(#35785073)
That’s going to hurt them over time. Current RE values assume abnormally low interest rates in their valuations. Over time, reversion to the mean in both interest rates and valuations will eat away their equity.
Further, not letting the property go to market is just bizarre. It’s saying they think they can’t get a better deal by letting more people bid on it. That’s categorically false unless the seller knows the value of their property is below current market conditions. Being that they’ve probably not transacted much in the current market this is erroneous. Let the property go to market and take in bids over at least a couple weeks.
Any bidder saying their bid evaporates if the property goes to market is not worth believing.
Of course, maybe I’m wrong and there are serious buyers who make true highest offer off market. But that probably signifies something truly and even bizarre - and possibly a tendency towards market failure.
Further, not letting the property go to market is just bizarre. It’s saying they think they can’t get a better deal by letting more people bid on it. That’s categorically false unless the seller knows the value of their property is below current market conditions. Being that they’ve probably not transacted much in the current market this is erroneous. Let the property go to market and take in bids over at least a couple weeks.
Any bidder saying their bid evaporates if the property goes to market is not worth believing.
Of course, maybe I’m wrong and there are serious buyers who make true highest offer off market. But that probably signifies something truly and even bizarre - and possibly a tendency towards market failure.