IMany of the homes being sold by RealtyTrac are being sold at very low prices, and I was wondering why?

Asked by Jared, Fremont, CA Sat Jan 3, 2009

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This question is about this property: http://www.trulia.com/foreclosure/2003251415--Farrol-Ave-Uni…

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6
Eric Funk, Agent, Morristown, NJ
Sat Jan 3, 2009
hi Jared,
Realtytrac is a service that tracks foreclosures. It is a subscription only service and many times the houses are not actually up for sale at all. The owner just hasn't paid the mortgage. Realtytrac tells you exactly which stage the foreclosure process is at: Lis Pendens, bank owned etc. The value amount that you see on these homes is the amount required to pay off the loan. As the house may not even be on the market, this amount doesn't always correlate with what the owners would accept or even whether the house is worth more. For example, an $800,000 home may have a $400,000 mortgage and the owner has fallen behind in his payments. Realtytrac will show the value for the house at $400,000 because they are just showing the mortgage amount.
Hope this helps!
Thanks,
Jackie
2 votes
terryriw53, Agent, Sewell, NJ
Sat Jan 3, 2009
RealtyTrac is a service. They are NOT a brokerage company. They take data from certain public records and compile them for their subscribers. The information they offer, at best, is questionable and may no longer be valid. They do not update it in any timely manner. We use to subscribe to the service in order to locate homeowners who were just serviced with their foreclosure notice. What we found was that the information was updated on an inconsistent basis and that many people we tried to contact were already foreclosed on and no longer owned the home. Once a bank forecloses and puts the home up for sale, RealtyTrac's usefullness diminishes considerably.
So, to answer your question, RealtyTrac sells nothing but their service.
1 vote
Laura Gianno…, Agent, Manahawkin, NJ
Sun Jan 4, 2009
Many of the properties on RealtyTrac are in pre foreclosure and the amount listed is the loan default amount.

Laura Giannotta
Keller Williams Atlantic Shore
0 votes
John Sacktig, Agent, New Jersey, NJ
Sun Jan 4, 2009
Hi Jared,

A lot of people buy into subscriptions that offer "services" with so called inside information, when in fact the information posted is public information. Those posted are in "pre foreclosure" and may not even be for sale. Great service if you want to give someone $30.00 per month to know who "may possibly" go into foreclosure and possibly sell their home within the next 6 -12 months. There is some information available, but I have not seen it to be reliable at all.

And realistically, look at the Trulia comps of recent sales.. Why would you get this home for 35k when the area recent sales are 385k.. do you really, I mean really think the bank is going to sell this property for 35k?
0 votes
Tom Lange, , 08002
Sat Jan 3, 2009
I have tried to make sense of Realty Trac and have concluded that it provides some information but nothing that isn't public anyway and often it is outdated and worthless. I don't see any value in the service.
0 votes
Walter Burns, Agent, Hoboken, NJ
Sat Jan 3, 2009
Jared,

Thank you for your question. Many of the properties on Realty Trac are either in foreclosure or pre-foreclosure/"short-sale". The bank who owns the foreclosure properties want to sell them quickly and put them at a price that will move them fast. The bank does not want to be in the property ownership business. They make their money off of loans. I have seen many foreclosures sell for over the asking price, many with multiple offers on them. Banks tend to favor offers with no contingencies (mortgage contingency, title search, appraisal, etc.). This is why a cash buyer is very powerful in the fore-closure market.

An asking price is not an indicator of true market value. In the end it is the buyers who will determine the value of a property. I would be curious to see what many of these Realty Trac properties you are referring to eventually sell for.

Please let me know if you have any additional questions. I can be reached at 201-694-8946.

Sincerely,

Walter J. Burns
Realtor-Associate
Weichert Realtors
1 Newark St.
Hoboken, NJ 07030
201-653-8488 Ext: 230
201-694-8946 Mobile
201-653-4154 Fax
walterburns@gmail.com
http://www.walterburns.com
0 votes
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