Just because Freddie Mac has a glut of properties on its hands, buyers can’t expect Costco prices. Most of the buyers approaching Freddie have been looking to buy at 40-60% off of market price, like the final weeks of a Borders liquidation sale. Instead, Freddie is sending them back this letter which says sorry, we’re only taking less than 10% off.
No doubt Freddie Mac is worried about selling off too many properties at once, as a bunch coming on the market at once would drive overall prices lower. “We are extremely mindful of the impact in our approaches to pricing and how it affects the values of neighborhoods should a discounted sale occur,” Freddie Mac said in the letter, which was obtained by American Banker.
Interestingly, at the bottom it says “HomeSteps Questionnaire – Bulk Sales. February 4, 2009.” So they haven’t changed the form since 2009? Despite home values declining since then, they haven’t altered their stance on asking price to suit.