I get them regularly. They have been suckered into thinking that anything that is a bank owned property will be a good buy. Everyone is looking for a good buy.
Sell it to them. Sometimes you can't save people from themselves. Bank owned properties are no different from other properties except that they are bank owned. They are priced based on the bank's appraiser. They are often discounted for condition. They are listed with agents just like us. No difference. No matter. Just sell them.
We get a lot of people coming in and wanting to see REO's and pre-foreclosures. They have the idea that they are going to get a steal if they can pick one of these properties up. We sit them down and show them homes that meet their criteria and also show them the so called bargains they came in for. Sometimes they see the light...
Shannon,
I have definitely noticed this in our marketplace. Thanks for sharing what's going on in yours.
I think it is great that people are trying to get a good buy if they think it is possible. I love that people want to continue to invest in Real Estate. I have seen a few great deals our there, but they are few and far between. When I get concerned is when the clients wants to only look at bank owned and not allow me to show them other good value properties. Things are really normalizing in Bellingham so the prices are looking good all around.
Thanks for all of your responses.
I love the post! This is so true. I currently have over 25 REO listings, and would only recommend 3 or 4 to clients. The banks are using appraisals for pricing, and are behind our declining market. A desperate seller with equity beats a bank owned listing everytime. There are REO deals out there, but they need to be searched for quite thoroughly!
Check out my rant today about the short sale bait and switch with pricing! http://activerain.com/blogs/kdixon
Thanks,
Ken Dixon www.DixonTeamOC.com
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