Market Conditions in Corona>Question Details

Jwills7, Home Buyer in Corona, CA

What is the disparity in house prices between the average resale house and the average foreclosure or short sale. Thanks you. Roger Wills

Asked by Jwills7, Corona, CA Sat Apr 7, 2012

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Good question, but what should be important is the price vs. value (recent comparable sales in the area).

Good luck.
0 votes Thank Flag Link Wed Oct 9, 2013
Last night, I was curious about that...what I see as a Realtor vs stats, so I took stats for last 3 months in Corona...
# of sales: Standard-637, REO-357, Short Sales-881
Days to sell:Standrd-76, REO - 55, Short Sales - 149
Avg sale price:Standard - $331,573,REO-$268,504,Short Sale - $288,647
Avg list price: Standard - $369,586, REO-$284,903,Short Sale-$295,687
0 votes Thank Flag Link Sat Apr 7, 2012
Actually it has been my experience that foreclosure (bank owned properties) and standard sales are usually sold at market value because there are not a lot of homes to pick from and there are a lot of buyers bidding on the same property. The short sale many times sell for up to 10% below market value, because of the time that it take to get an answer and because in that stage the banks are willing to barter a little more, so that they won't have to pay for the foreclosure process. And then you see flipped property (which is a standard sale also), which have been cleaned up by an investor and many time sell above market, because of the condition and amenities. So I don't believe there is an exact answer.

If you pay for something below market value and that is the trend in that neighborhood, you will have contributed to that area going down in value, because you become the new comparable. The same goes with if you pay more and the trend is going up then you will have contributed that area going up in value.

In my opinion, a buyer should be aware of what the comparables are in the area, including amenities and condition and then be very sure that they can afford the financing of the home, now and in the future. Let me know if you need help in this.

Diana Margala 909-560-0145
0 votes Thank Flag Link Sat Apr 7, 2012
Hi Roger,
I believe that it's a misnogmer that foreclosures and short sales are "great deals". While it's true that investors often purchase homes for well below market price, the traditional home buyer (using financing for their purchase) does not typically get a large discount, unless the property is in disrepair.

Lenders perform their analysis on a property, to determine the accurate market value, and are not taking much less, especially since the inventory is so low and there are multiple offers on desirable properties right now.

If you'd like to view Corona, CA real estate market reports and reports for North Orange County CA cities, follow this link: http://www.ocrealestateandloans.com/tag/corona-ca-market-reports/
0 votes Thank Flag Link Sat Apr 7, 2012
Hi Roger,
I think that is a question we will have trouble answering!
I just had one close a week ago and I calculated the difference to be about 6%. I think that is the exception rather than the rule. That home went into escrow just before we started having so many multiple offers again.
All banks work differently!
But most all banks now do 2-3 appraisals on their properties. So getting it at a tremendous discount is just not happening any more. Yesterday I got an accepted offer on a repo property. The home is worth about $460,000. The buyer got it for just over $400,000. There will be about $30,000 in repairs required on it. That means they are about $30,000 under market. That is also about 6.5% return. But you have to have the capital to do repairs.
However it is tough to compete with the "Flippers" on repos. Yesterday I also lost a bid on a home in Brea that we were the highest offer but an all cash offer was awarded the home. That home was less money than the other. I believe you can get a better deal the higher the prioce of the home.
There is less all cash offers the higher the price!
If you are patient and have a diligent Realtor who is willing to hang in there until you hit on something you will get a good deal. A steal, not so much, but a good deal.
Best of luck to you,
Connie Bramble
Prudential CA Realty
714-337-8718
0 votes Thank Flag Link Sat Apr 7, 2012
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