How do I know what the true price of a REO home is?

Asked by Christine0331, 19426 Mon Mar 1, 2010

I have been looking around on the internet at a few sites that got me interested in REO homes. I am very new to this so I dont understand a few things. There is a property that I am very interested in on here. The following statement is made in the listing....

The estimated sale price is $1655.

In looking at other sites the same listing is says sale price is almost 290,000.

Which is the correct one?

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11
Jennifer Day…, Agent, Phoenixville, PA
Tue Mar 2, 2010
BEST ANSWER
Good Morning Christine,

I can definately understand your confusion regarding REO properties. Many of the sites are not completely accurate. I can definately tell you that the home will not be listed at $1655.00. Many of these sites actually list properties that are not on the market, may be in pre-foreclosure. A large majority of people in Pre-Foreclosure get out of that stage and the house never sees the market.

Keep in mind that all REO homes are listed with Realtors. We always have a complete updated list of what is currently on the market. This particular property you are looking at is not yet on the market. Once the house is taken by the bank the listing price tends to be more towards the true market value.

Keep in mind that purchasing foreclosed homes is not the same as purchasing a home from the actual seller who still owns the home. The bank has a bottom line of what they are looking to get for the property. They look at the comparables in the area and they then set the price. They are not in a hurry to unload the property...a big misconception with buyers. Different foreclosures structure the sale differently. For instance some will want the buyer to pay all of the transfer tax. All will want you to obtain and satisfy the borough or township Use and Occupancy if one exist. Also they are sold in as-is condition and there is no seller's disclosure available. This process can be time consuming.

It is extremely important to utilize a Realtor for your home purchase. Be sure the Realtor you choose is EXPERIENCED in Foreclosures as well as the area you are searching. This will be a great benefit to you. Normally you will need a Realtor in this type of situation anyway as the listing agent does just that...list the Foreclosed properties and normally are not part of showing the properties.

I have access to RealityTRAC which is where you found this property. I have looked for this property and it is not yet in Foreclosure statis. This could take months. RealityTRAC shows homes in different stages of the foreclosure process...those that are in pre-forclosure, those that are bank owned and those that are for sale on the market.

Jennifer Daywalt, Realtor
Re/Max Results Realty - Collegeville
Top Agent 2004 2005, 2006, 2007, 2008
Author of "Ask The Realtor" Column in The Saturday Edition of The Phoenix Newspaper
Licensed since 2001 in PA
610-489-7355 Main Office
610-999-7693 Direct Line
Sellinghomesjenn@aol.com
View all Available Homes on my site including Foreclosures - http://www.JenniferDaywalt.remax.com
1 vote
Scott Godzyk, Agent, Manchester, NH
Tue Mar 2, 2010
Christine when ever you see Realty Trac you should know that is not an asking price. Realty Trac does not list or sell homes, they gather information on homes in preforeclsoure or foreclsoure from registry of deeds and legal notices accross teh country. They then put it in a feed on sites like this hoping you will click on their site and purchase a memebrship to get more information. the price you see may be what they owe, what they are behind or an amount quoted in the legal notice. Virtually in all cases the price listed are not the asking price nor does it have anything to do with what the house will sell for or what the asking price is. I hope this can clear things up for you.
Web Reference:  http://www.ScottSellsNH.com
1 vote
Jennifer Day…, Agent, Phoenixville, PA
Tue Mar 2, 2010
Wow David that's quite a negative view on Realtors. I wouldn't even know where to start! First I do belong to RealtyTrac and I can assure you I am anything but desperate or inexperienced. In fact I have been the top agent for Re/Max in Collegeville for 6 years at this point and was top agent in another Realty Company for 4 years prior to that. I have sold many foreclosures and short sales so I tend to believe I have much experience in that area. RealtyTrac can be a good source of information. When my clients go onto one of these sites I can easily access the information whether it be a pre-foreclosure or an actual foreclosure and many times can make a connection with the owner of the property. I also believe the blanketed statement that Realtors and Brokers are "lost in it" is a bit far fetched. Although it is very true that when a buyer wants to purchase a foreclosure and/or short sale it is imperative that they work directly with a Realtor who is experienced in that process, I believe there are many Realtors who have taken the time to learn about the actual process. Many more have extensive hands on experience. Also to clarify RealtyTrac does not SELL any leads to me or to any other Realtors as far as I know. Perhaps the other sites do. I utilize the site as a benefit to my clients and to keep myself updated on the upcoming market.

Its truly a shame that anyone on this site feels they need to blow out someone else's candle in order to make theirs shine brighter.

Jennifer Daywalt, Realtor
Re/Max Results Realty - Collegeville
Top Agent 2004 2005, 2006, 2007, 2008
Author of "Ask The Realtor" Column in The Saturday Edition of The Phoenix Newspaper
Licensed since 2001 in PA
610-489-7355 Main Office
610-999-7693 Direct Line
Sellinghomesjenn@aol.com
http://www.JenniferDaywalt.remax.com
1 vote
David Witsen, , West Palm Beach, FL
Tue Mar 2, 2010
Christine,
I have All the Info for you, Contact me directly and I will gladly share.
I can't share my secret resources on this forum simply because I have spent several years developing my strategies. To just give my secrets to every realtor who is on this forum would be like CocaCola posting their secret recipe online.
And so you know how it works. ALL the sites are linked togther thru whats called MLS Reciprocity. it is similar to an RSS , Twitter feed. These sites Pull Inof from All the other sites and that's how they get the info. Fully automated and full of errors.
Feel free to contact me for all the info. No Hard Sell... No commitment... Just good ole fashion SERVICE !
0 votes
David Witsen, , West Palm Beach, FL
Tue Mar 2, 2010
In Response to Jennifer Daywalts post. and for clarification.
I know Jennifers reputaion is Excellent. And She is in the eite group of Knowledgeable and experienced Realtors. My post was not directed toward her or anyone else on this forum. And Kudo's for subscribing to Realtytrac (as an agent) . That demonstartes the diligence of her credentials and going the extra mile for her clients..
What I was referring to was the Consumers subscription. When these sites ask for the CONSUMERS Crecit Card info. And then provide them with less information, Very outdated and skewwed, than a Experienced Realtor could provide.
Jennifer is correct that SHE doesn't purchase leads from RealtyTrak. However, They and all the other sites DO in fact Sell leads . It's thoses Realtors and brokers who purchase "Leads" not subscriptions, that are (IMHO) desperat as they don't have enough business so they BUY leads.

If my post came of as attacking All Realtors, I apologize. Just like every other industry, There are the Leaders who are Ethical and diligent, The Followers and the Flounder'ers

To the Consumer: Hire The Best !!!
And Jennifer is absolutley "One if the Best"
0 votes
Christine0331, Home Buyer, 19426
Tue Mar 2, 2010
TYVM for all of your help. I understand what all of you are saying with it being to good to be true however there are a TON of them and some of the same ones are listed on Yahoo with the same prices. I understand that I should talk to a Realtor about this. I was just hoping to do some leg work before I needed to contact one hence the reason I ended up here. The only thing it ever tells me that it has been listed by RealtyTrac. So do I just call a local Realtor?

The property was found on here and showed this price. It also so stated that it was a REO. If it is not actually listed yet then why is it posted that it is?? This is very misleading and makes me think they are just twisting things as several sites have all the same info on it...hence the confusion. If any of you could actually send the proper information I would be greatly appreciate it. I also have family looking for a home in the area as well so we are going through it together and just trying to find out what we can.

TYVM again all of you for your help.
0 votes
greg, , Boston, MA
Tue Mar 2, 2010
There are a ton of unreliable resources for REO or foreclosed homes information. I get numerous phone calls daily from people who see our REO listings being marketed for $2,000.00 when the actual prices vary from $179,000-$299,000. AVOID these sites and find a local realtor who can give you accurate information.
0 votes
David Witsen, , West Palm Beach, FL
Tue Mar 2, 2010
Hi Christine,
Now that you have provided a hint, I have located the EXACT property you asked about. What is even better, I have every piece of information available on it.
It was listed by 2 different agents for 1 year and they couldn't sell it. unfortunately for the sellers (but lucky for you) the home went to foreclosure
It's a rather cute house with more than an Acre of property I Can email you a dozen pictures (inside and out) if you would like.
The property IS STILL AVAILABLE. And handled the correct way, Can be bought well under market value.
.
Here's where you find out that you don't need a good or great Realtor. You need a Realtor Who KNOWS how to get the information and get the deal done.

Even though you already have chosen the best answer, I will still post What I have discovered for you. If it seems I am boasting my services, I guess you'd be right. It pains me to know end when consumers ask for advice and the responses, Although well hearted in nature, are just wrong or inaccurate.

This is a New Era in Real Estate and even Realtors & Brokers are lost in it. This is Not the time to "Just pick a Realtor" , Unless you like frustration and want to over pay for a property.

A WARNING which will save you a ton of Time, Money, Energy and Frustration: RealtyTrac and ALL the those other sites are a total waste of your time & money(as you just learned) . They are there for one reason and one reason only. To Tease you with info (many times inaccurate) and then bribe you for your credit card to get more info (again inaccurate) . Then they take YOUR INFO and Sell it to a desperate and inexperienced Real Estate Agent.

Hope this sheds just a little light on your question.
And Oh Yeah, Both the numbers you saw , $1655 and $290,000 are correct for what is in the Records but those numbers mean absolutley nothing.
I can explain in great detail if you would like.

Very Respectfully,
David

From the Desk of David Witsen
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Office: (215) 362-3834
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0 votes
David Zucker…, , Frederick, MD
Mon Mar 1, 2010
If it seems to good to be true then it is probably a misprint. Have your Realtor contact the Listing Agent to verify.
0 votes
Christine0331, Home Buyer, 19426
Mon Mar 1, 2010
http://www.trulia.com/foreclosure/3001391711--Betcher-Rd-Col…


This is the listing we have been looking at. Thanks for your help.
0 votes
David Witsen, , West Palm Beach, FL
Mon Mar 1, 2010
Christine,
We need much more info. Specifically, The Address and the Broker,. From there, I could do some PI work to learn what the bank will accept.
There are secrets to get a REO under agreement. And acting quick (very quick) is one of the keys
anything that is a deal will be long gone within 2 or 3 days. -
If you provide more details, I could be much more specifc.
Respectfully,
David
0 votes
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