Banks and asset managers all look for the same things when determining an offer that has been presented by the REO agent, fast closing, highest and best offer, the more down payment and type of financing are considered as well.
The banks want to know the buyer will close the deal.

Banks will take the highest number they can possibly obtain while insuring there will be a closing, much like you would if you were selling your home. Buyers should know going into a transaction that most foreclosures are priced to sell within 30 days. The list price reflects the significant reduction from the properties high value and probably a significant loss on the lender's loan.

The best thing to do would be to have your agent comp out similar properties so you can get a "rough" number in which to submit your offer. If you are looking for to find deeply discounted homes, there are 4 key areas in San Diego in which you should focus. There is also 2 distinct elements to your offer which will allow you to win properties over higher bidders.

Truthfully, there is no standard. That is for a few reasons. First every REO foreclosure is managed by an asset manager, and ever bank has multiple. There are many personalities involved, and that affects what banks are willing to accept.
Primarily, most TRUE REOs are priced below fair market value when they hit the market, as the banks are hoping to generate HIGH interest, and let the price go up from there.

Again, with no set standard, the best way to determine your price is to find a good agent, and have them do a FULL Comparable Market Analysis (CMA) on any home you are writing an offer on. The benefit to buying right now is that money is cheap to borrow, and prices are low, so bidding "low" isn't always a good idea....but it always depends on the situation.

Best,
Justin
619-861-0745
Justin@middletonteam.com

I would say the answer to this good question is quite complicated.

For the lower price-points, on single family residences in respective communities, I can say with total confidence that banks will flat out not accept FHA offers, and even 20% down offers have relentless competition. I'm seeing most sellers hold out for the highest price they can get, often above fair market value, and then deal with it later if it doesn't appraise.

For this reason, among others, banks and other sellers seek all (or mostly) cash buyers as their first choice, because lender approval will not be a deal-breaker. They have been able to do this with relative ease, because they're getting 10+ offers within days putting a sign up.

The lower-end markets have been greatly impacted by government and banking actions that have created an artificial short supply. With such a short supply, and such a great demand, investors and mostly cash buyers are sweeping up the good deals. The rest of the first-time home buyers are considering themselves grateful for opportunities to scrape up what's left over.

For mid range homes, you can get fair market value with 20% down, but still need a healthy down payment fi you want to compete.

For high-end homes, you can't qualify with less than 20% down, and more in most cases... but here, the buyer is king as the top end of the market is flooded with supply.

10% to 12% less the fair Market Value
http://www.WilliamSquires.com http://www.ShortSaleRealtorIL.com http://www.ForeclosureIL.com http://www.ILHomeRebate.com

Hi Carole,

Basically it depends on the Area and your Price Point. Some areas have had a higher demand in San Diego County than others. Lets use Poway as an example. During the last year when we've had clients looking at houses between $350,000 - $450,000 there seems to be well over 30 + offers on every house we put an offer on. We did find homes for most of these people of couse, but it takes constant observation of what is coming on the market, price reductions, status changes and trying to be one of the first to put in an offer to try to get good positioning. Because this price point in the Poway area is so hot right now people are paying more than they would expect to pay for REO's / forclosures and short sales. The higher the demand, the higher the price. Some REO's and short sales even go for the same as a regular sale. If there is enough demand on a particular property they can even go higher. I certainly don't want to scare you away, but we like to be very direct and give you all your options so you can make an informed decision. It's a great time to buy, especially since they most likely extending the First Time Buyer tax credit.

Give us a call and we will check out the area you are looking at, let us know what you want to spend, what yours goals are with the purchase, your family residence, an investment, ect... We will let you know what properties have sold for recently and we will start working on finding you what you are looking for.

We look forward to hearing from you.

Cheryl Roehrl
Pacific Beach Realty
Realtor Assistant
858-342-4658
pbrealtygal@gmail.com

Marcelo A Campos
Pacific Beach Realty
619-920-2545
Lic # 01260114

CHECK OUT MY WEBSITE http://www.SanDiegoBuyingRealEstate.com

Hi Carole,

The bottom line is simple, fair market value based on the condition of the property. Let the comparable sales for like properties be your guide.

Lastly, when pursuing bank owned listing, do not get attached to any property. You must learn to approach it as business decisions rather than a standard home purchase. It saved you lots of stress and potential heart ache.

Best regards,

Mark and Kari Shea
Real Estate Experts Serving San Diego County
Investment, Foreclosure & Short Sale Specialists,
Development Opportunities & Traditional Real Estate

Right now, in CA there is a lot of competition for houses under $400,000. Foreclosures go for less than a regular sale, but for more than most people believe. Foreclosures are the new standard for pricing unfortunately.

Let me know if I can help you in any way!


Joan Wilson (Realtor, SRES, Ecobroker)


California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
Fax: 760-946-7894
JoanWilson@prusd.com

Dear Carole,

The information provided by the other agents is right on target. I list and sell bank owned properties direct and the banks are pricing their foreclosures just below fair market value in order to move them quickly. I usually have several offers the first day the property hits the market and have seen properties being sold for over $45,000 of list.

If you are interested in receiving up do date informaiton on foreclosed homes please feel free to send me an e-mail via my website and I'm happy to arrange.

Sincerely,
Katrina Hamilton
REO Agent
Direct: 858-405-4407
http://www.downtownREOs.com OR http://www.foreclosures4sale.listingbook.com

Most people believe that they can just steal foreclosures. The truth of the matter is the banks want as much as they can get for their foreclosures. They go through the process of ordering multiple streamline appriasals or broker price opinions (BPO's) so they can get an estimate of value. Once the asset manager has this estimate of value, they will assign the listing to a real estate broker and tell them the price the property needs to be listed at. Over 80% bank owned properties in San Diego county receive multiple offers and generally get a counter from the bank that asks buyers to bring their highest and best offer. In many cases, the bank owned properties actually sell for above the list price. The attraction to bank owned properties is that they are actually for sale and can close in around 45 days whereas a short-sale could take months. There are still some traditional "equity" sales out there, but often the owners are unrealistic about the value of their house and therefore overprice drastically. Happy house hunting out there...

It depends on what geographical your buying in but in southern California, REO's have made the market turn into a bidding war among the buyers. Usually a home sells for about 10-30 thousands more than the listing price, buyers have to pay for termite as well as closing costs. This is just an average I've seen for most deals in my office.

John & Sarena Villaescusa
Cell- 562-818-2671
Email- Johnv@kw.com
Website- http://www.VGroupHomes