There is a new trend in the Reno Real Estate market with Bank Owned (REO) and Short Sale properties in regarding to asking price.  Many agents with Bank Owned (REO) properties are listing the properties below the fair market value (FMV) for the property.  This is sure to generate a multiple offer situation with the asking price being just a beginning price for where the property actually sells.  As an example, we had a client who put an offer to purchase a Bank Owned (REO) property for $155,000.  The asking price for the property was $134,900.  We were one of four finalist in the multiple offer game and were requested to provide our best and final offering price.  My clients offered $165,000 for the property and were out priced by one or more of the remaining three offers.  My clients offered 22% higher than the listing price and did not get the property.

The same situation is occurring with Short Sale properties however it does not appear to be as widespread as with Bank Owned (REO) properties. 

The moral of the story is to make sure that you understand that you need your agent to run a competitive analysis for the last 90 days of sales in the properties area and size range and determine what fair market value (FMV) is for the property that you want to make an offer on.  Use this fair market price to help establish a price for your offer.