Are Bank Repos the Best "Deals" for Buyers?

My personal opinion is there are better deals than repos.  I tell anyone looking for one in this area that due to the inventory there is an awesome deal in almost every neighborhood.  I think some people think they have to get a deal by getting a bank repo.  It's more of a "get one up on someone else" mentality.  If they could see someone crying at a closing table or scratching their nails down the courthouse steps it would mean more to them.  I don't get it.

Sandra,

It depends on the type of property and the actual condition of the home. Banks are often out of sight and mind when it comes to price.

REO properties are always priced at are slightl above market price and then as time moves forward the work like an owner and reduce the price. The best way to find a value is before the foreclosure process really gets steaming along and make a deal with the owner and allow the bank to see you will close and secure their payment by a certain date.

I'm in Gwinnett County GA.  I don't see many signs pointing out bank owned properties, but I agree that they are not the best bet for buyers.

I don't know very much about foreclosures... but it would seem to me two things.

1) If there are problems with the property, that require a big expense to repair, that could be factored into the negotiations to help adjust the price.

2) The 'deal' would probably have something to do with how much money the bank has in the property. There may be foreclosures where the previous owners had paid enough down on the mortgage that the bank is able to get a higher sales price than the money they are at loss at for the loan and reo possession expense or there may be times when the amount owned is more than the value of the property. I think the latter is probably the more frequent, but I don't know.

I agree with your general principle though.... an reo is not necessarily a better deal, just a different deal.

Hi Sandra, I "discovered" you because I just came up against you in the "California" listing on AR.

As for REOs, you have to remember two things: Bankers are jerks and they have to get the REO off their books asap.

The listed price has absolutely nothing to do with what they are "willing" to take. A low-ball offerf from a qualified buyer will probably be accepted. Give it a try.

Bill Roberts

Hi Sandra, I have done a whole series of posts on short sales. You might want to read them. It could help you in your short sale experience. Not just by reading my post, but all the comments too. A lot of good useful information is there.

You will find that some banks just "will not play ball." They are best avoided. Too much of your time and effort is spent with little or no chance of success. Not good for you and not good for your clients (buyers and sellers).

Bill Roberts

Sandra,

Bank repos can be good deals, but you have to do your homework with them. Nowadays they are not priced as nicely for the buyers as they used to be, yet there still are opportunities. Short sale can be a pain if the bank involved is disorganized or otherwise distracted. The process can take months, so who has the time for that.

I am a local in Temecula, Ca 92591 and I for one think Bank Repos can be a lot better than regular sales. They often are priced 20-30% below what they last sold for, and normal home owners do not have the luxury of doing this. Also you can often get loaded homes where people fell on hard times, foreclosed upon, and you end up getting a steal of a deal! I think Realtors (some not all) avoid them as there are more disclosures, less commissions, and they're overall not the easiest transactions to handle.