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Courtney, Home Buyer in Ohio

I am interested in buying an REO home. It needs a lot of work- a lot. I am wondering how flexible the

Asked by Courtney, Ohio Sun Jun 29, 2008

listing price is. In this market and with all of the repairs it needs I feel as though the price is quite high, although I have read that they are usually priced to sell. What are your thoughts?

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There is often a misconception that REO homes are a "good deal". Typically the opposite is true. In my experience they want what they want and that's it. Some REO holders are more flexible than others.
1 vote Thank Flag Link Sun Jun 29, 2008
In my area I am finding the good REO properties are gone the first or second day that they are on the market. To give you an example, one of my investors, who is a cash buyer has not been able to get an offer accepted for the last several REO properties he has put an offer in on. We look at them on the first day with his inspector, and like I said he is a cash buyer and in the contract we state he wants to close within 14 days, no inspections, no contingencies and offers full list price and has not had an accepted offer in the last several contracts submitted. We submit the offer within the hour he looks at the property. So, to answer you question........the good REO properties will be gone immediately. Banks have finally listened and are pricing the homes to sell. The investors are coming out of the woodwork. One benefit to you is if you are an owner occupant. Some banks give owner occupants an advantage. Hope this helps you.
0 votes Thank Flag Link Tue Jul 8, 2008
Banks are as stubborn as homeowners when it comes to property values; perhaps more so because the office-workers in the bank have less skin in the game than homeowners. Typically they simply don't know what the house is worth; they know what they loaned on it and imagine it somehow floats free of the real estate flotsam clogging the court system.

You will have to convince them, if they can blame the price on some other responsible person they can clear it off their books. Get broker opinions (as a seller not as a buyer which kicks in the full-of-beans pricing) and have it appraised. Eventually they see the light.
0 votes Thank Flag Link Sun Jun 29, 2008
You might want to check out my recent blog. It talks about listing "flexibility". Click on the web reference.
0 votes Thank Flag Link Sun Jun 29, 2008
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