You wonâ€™t know whatâ€™s out there until you go. A reputable Realtor will be able to run comps for you on any property you may be interested in and you will have an opportunity to see for yourself what is going on.
Two important things to know:
(1) There are approximately 14-18 months of REOs still coming â€“ they will continue to shape the market as they have done this past couple 18-20 months.
(2) In many places in the Bay Area we are now seeing multiple offers on REOs as soon as they hit the market, and prices are being driven back up. This is normally the type of activity you would see when the bottom of the market is starting to firm up. In other words, there is no guarantee that, because it is an REO, you can offer any old price and the bank will jump at it.
Weâ€™ve represented many buyers in the purchase of REOs, and we have seen a definite change in the past few months. And remember that no one will ring a bell when the bottom of the market is reached. You typically only know in retrospect, then wish youâ€™d taken advantage of it as it was happening.
It does not hurt to go on an "REO tour". When buying anything and especially when buying a home, which is the largest single purchase most people make in their lifetime, it is always good to have as much information as possible. Just because you "go on an REO tour" does not mean you have to buy. May sure you look at the paperwork they ask you to sign first and see what your obligation is to the broker doing the tour. Also, I would not pay for an REO tour. Any reputable Realtor would be happy to provide you with this same information for free. And remember, not all REOs are a good deal. Make sure you know the market comps and don't just assume that the property must be priced right.
Best of luck in finding a great home at a great price and negotiating a great deal. And Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty
Please go to my website which is 100% dedicated to foreclosures and the current state of the real estate market in Alameda county. All of your quesionts about REO's and foreclosures will be answered there.