Why a bank owned REO property may be a great deal!
February 29, 2008
Did you know that in a recent look at our market, it was determined that bank owned property median listing prices are as much as 24% LOWER than the median home price? Take a look at this chart from Trulia:
http://images.trulia.com/resources/Trulia_Trends_Report-February_2008.pdf
I had a seller not long ago wanting to sell in the range of 450k. The comps in the area told us 450k was a good price. But then came two bank owned properties on the same street! One at 375k and one at 359k. How does a “regular” seller compete with that? Unless the homes are total junkers, and sometimes they are, why would a buyer pay so much more for the “regular” seller house? Well the answer is, they won’t. Sellers are really having to get aggressive with their listing prices, and they’re going down. Our trend reports are showing that most of our areas are having median home price drops of anywhere from 2-10% month over month.
For buyers, what a perfect scenerio. For the short sale listings I list, when we price aggressively, we’re getting multiple offers on almost all of them. So perhaps a “tipping point” is coming. Investors will come out. First time buyers will start to follow suit, and soon we’ll have some brisk sales to report. Its said that when they’re is blood in the water, the sharks come out. Well the folks looking for the “deals” are coming out.. shouldn’t you ?
Contact Catherine Myers, REALTOR
Accredited Buyer Representative
http://contracostashortsales.wordpress.com
925-683-2125
Serving home buyers, investors and sharks 
in Contra Costa County and parts of Alameda:
Walnut Creek
Pleasant Hill
Martinez
Pacheco
Lafayette
Alamo
Orinda
Moraga
Danville
Concord
Clayton
San Ramon
Pleasanton
Livermore
Antioch
Brentwood
