Hi, So you are looking for a fabulous deal. Below is some information to help you in your quest for a perfect REO/Foreclosure/bank owned home. Here are the numbers on REOs.
- In September 2008, there were 8,078 REO on the market.
- This accounted for about 15% of the total amount of homes on the market.
- However, 2,388 worth of REO homes sold for that month. They comprised about 40% of the solds eg REO are the homes selling and driving the market.
- The entry homes are the ones that are moving. This is where you will find the most REOs and the most competition.
- If you have the cash or credit scores, homes above $450K are real bargains. Buyers are being required to put down 20%.
- In a recent example, a home was purchased in north Scottsdale last August 2007 for $1.3 M. It recently had to be lowered to $700K for it to get offers.
Depending on the price of the REO, there are several items happening:
- The good homes below $200K are getting 5 plus offers and sell quickly. So if you see something you like, act on it quickly.
- Many of the homes below $120K have been vandalized or stripped by the owner. In some areas, it can be as many as 50% of the homes.
- It is also typical for them to be missing AC units. It might have the outer shell but make sure the unit is actually there.
- Other items that most homes will need are paint, carpet, and appliances. For the ones in bad shape, the list can be pretty long.
- Many times, these listing only contain one picture and the REALTORS do not mention the amount of work needed. Therefore, call in advance and ask if it is still available and the shape of the home. Otherwise you will be driving around town without much to show for it.
Failing To Use Home Inspection Company
- Buying your home often times the most important investment and financial transaction that you will ever make.
- A home inspection can save you hundreds or even thousands of dollars and unexpected problems down the road.
- In addition to the inspection, it is often a good idea to request some type of Home Warranty to cover the electrical appliances that come with the home.
I am Realtor with WestUSA. I have completed deals from entry level housing to million dollar homes. I keep informed about the real estate market both locally and nationally.
Excellent Customer Service: Listening to my client's needs, requests and requirements. Ensuring you feel comfortable about the transaction which means no pushy sales. Keeping customers updated on their comps and listings in their area. Returning phone calls and emails in a 24 hour time frame. Educating my customers on the process, paper work, and current market. Sharing my experience as a home owner, investor, and landlord. Requiring professional pictures & virtual tours for all listings to maximize exposure. Utilizing both the MLS and Realtor.com to increase interest in the property. Possessing the skills, training and experience to negotiating a solid deal.
More Information: Please see my web site at http://smileytrust.com/ for more information and my contact information.