REO shopping time!
Its happening, real deals in the East Bay!
These are not dumps, are in decent neighborhoods, and the bank actually prices the property to sell, way below market!! Note, we are not talking about short sales here. In fact, I would avoid short sales. In those examples, I have seen realtors price the property at a bargain price, only to find out that the bank/lender had not even reviewed the property listing and reject the offers as they come in. Its funny, you could have the same bank having completely different policies and posture with disposing REOs from short sales. The short sale department will take up to a month to respond to an offer and go through a staggered price reduction strategy. On the other hand, the REO department, will sell the home at 20-30% below current market value even if it means taking a $150,000 loss on its books. I haven't quite figured the "why" of it yet, but rather than spin my wheels rationalizing bank behavior, I rather be flushing these real "deals" out for my clients.
So here are two examples:
2019 Al
tura Drive is in Concord, about 1.5 blocks from Concord library and walking distance to Santos Plaza. It is 1,600sft 3BR/2BA on a 0.2 acre lot. The house had some cosmetic challenges. Owner bought it in Mar 06 for $525,000, bank took it back on 1/15/08 for $368,000 and prompty put it on the market on 2/8/08 for an unbelievable price of $250,000. Of course, sold on the day I saw it, which was the first day on the market.
881 Litwin Drive, also in Concord. Walking distance to Trader Joe's on the corner of Treat and Oak Grove and practically in Walnut Creek. This 3BR/2BA home sold in 10/2005 for $655,000. The bank took it back as an REO on its books for $504,000. Brand new on the market today at $399,000!
Remember my Oct 19 post on REOs and the 4BR townhouse on Hamlin Loop. Well that REO first listed at $699,900 and went pending 1/23/08, 205 days later when the price was reduced to $524,900. You think the banks are finally catching on! Are you?
If you are looking for a good pair of eyes for your next investment or your first home, please call for any advice or help you need.
Comments