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Bank owned, Reo activity.

Real Estate Agent with REMAX- Big Bear

January 12, 2008 06:23 AM

Yesterday while looking at my local MLX's activity sheet I noticed the one escrow opened for the day was on a bank owned property. I knew that the price was pretty good, so I wasn't very surprised.

Right before I left my office last night I looked one more time at the "hot sheet". Still only one escrow opened for the day, which like I said was on an REO. Then I noticed we had one sale close for the day, and low and behold it was on an REO property as well.

So this morning I get to the office grab some coffee and pull up the "hot sheet" again. No new escrows (big surprise, seeing how this is 7:30 in the morning) but the two new closings catch my eye. They were both on (you guessed it) bank owned properties.

We currently have 24 available REOs in our local MLS. We also have 10 REO properties in escrow in our MLS. Obviously that is a great percentage. I work in a small second home market in Southern California. Many of these REOs were vacation homes.

So my question is, is this happening all over the US? Are you seeing this much activity on bank owned properties in your area?

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Joeann Fossland

Advantage Solutions Group - Tucson, AZ

Master Certified Coach to Motivated Agents

The bank owned properties are going to make a big impact. The banks don't want to hold them, so they are going to price them to move! Good opportunity for buyers

Jan 12, 2008 06:31 AM

Jon Miller

United Country-Marshland Realty - Beaufort, SC

Yes, it is happening all over the place. I did a quicky search of my MLS and used the remarks column as a search and *REO as my criteria and found 9 listings of REO properties. I'm sure there are more than that out there, but that is just the ones that listed "REO" in the remarks column. and I deleted the ones that had "stereo" listed.

Ever try to do a remarks column search for the word "cabin"? Man, I get every listing with the words cabinet in it.

Jan 12, 2008 06:41 AM

Adam Brett

The Adam and Eric Group - Fullerton, CA

The Adam and Eric Group, Fullerton's Finest

The media is pushing REOs being the best deals. Buyers are dictating offers on these properties and they are going low. The difference between REO banks and sellers are REOs WILL sell.

Jan 12, 2008 06:44 AM

Joe Pecoraro

REMAX- Big Bear - Big Bear Lake, CA

Joeann- I agree these are turning into some great buys. Especially if you can find one that doesn't need much work.

Jon- We had an agent in our office go thru our whole MLS to find all the REOs. The reason is similar to yours, sometimes the search terms bring the wrong results. Luckily we are in a small market (around 1000 lisitngs) so now we just add the REOs to our list as they come u

Jan 12, 2008 06:46 AM

Adam- Good point. The buyers seem to take the media's word as gold.

Jan 12, 2008 06:51 AM

Sharon Simms

Coastal Properties Group International - Christie's International - Saint Petersburg, FL

St. Petersburg FL - CRS CIPS CLHMS RSPS

We're seeing a lot of foreclosures sell here in St Petersburg, Florida, when they are priced low enough. Some of them have more work needed than a buyer wants to take on, especially if it's not priced right.

Jan 13, 2008 04:33 AM

Diane Aurit

LKN Realty, LLC - Mooresville, NC

Lake Norman Real Estate

Joe, I know your area well as I grew up in Pasadena and even worked in San Bernardino. While here in the Lake Norman area of NC our lake properties have slowed, it isn't nearly as bad as your market. But, we never experienced your highs either. We depend on people relocating from other states whereas I'm guessing most of your clients are from So. Calif?

Jan 15, 2008 12:56 AM

Diane- You are correct. Most of our clients are second home owners from Southern California. However over the past couple years I have talked to a lot of people from Las Vegas also interested in Big Bear.

Jan 16, 2008 02:50 AM

Rudy Detgen

Troop Real Estate Inc. - Moorpark, CA

Realtor, Real Estate Agent, Homes, REO - Moorpark, Simi Valley

Hi Joe,

I'm seeing the same thing in Simi Valley,CA. If it isn't a short sale, it's an REO. People who don't have to sell, aren't. I am a listing agent for several asset management companys that hand me REO's to sell. If they are priced right,(at or below market), there is a phenomena that occurs. It's not unlike a shark feeding frenzy. We're talking 7 to 10 offers in the first 4 days of being on the market. It tells me, even though a lot of people are hurting, there are plenty of buyers out there waiting for a bargain.

Jun 12, 2008 02:45 PM

Bank owned, Reo activity.

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Joe Pecoraro

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