In case you are unaware, I have been focusing on bank owned property sales recently, or REO (Real Estate Owned). At first glance it seems like easy business. The banks can't sell the home at the Trustee Sale auction, so they give it to a network agent to sell. Easy, right?
The problem with national banks is just that, they are national. I currently have a listing from a top ten lender that uses stage coaches in it's marketing (shhhH! Don't tell.) The person making the pricing decisions on this property is in Maryland. I send reports regarding comps, regarding neighborhood values, regarding my own broker pricing opinion (BPO), regarding the short sale market, regarding the neighborhood dog to cat ratio; all in an effort to get the best price possible that will sell the home.
After 2 months on the market, the actaul pricing manager called us today, and asked "What will it take to sell this house?" Now, this is ia first! We explained that said property was overpriced, and asked if he had seen the research we sent. The answer was, "We just picked a price to see what would happen." If this guy was a home owner, I would give him the listing back!
Bottom line, we just got a $100,000 price reduction. Now, if I, as a professional licensed REALTOR, have this much trouble understanding how the banks are pricing the properties I am charged to sell, how is the consumer supposed to find a deal?
As I have always said, just because it is an REO bank owned property does not make it a deal.
So, consumers, be ready to write lot's of offers, and be patient. If you had wanted this house last month, but thought it was too high, you would be getting a call from me today with the new price. If you are a buyer, know your price point, and if you don't get it at first, be willing to come back in 30 days.
If somebody has a better strategy, please let me know!!!
Ken Dixon www.DixonTeamOC.com
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