Many consumers are unclear with some of the terms in today's Real Estate market.
"REO" (Real estate owned) is property that the bank acquires through foreclosure. The bank has already had an auction on the property and did not find a buyer. Currently REO properties are abundant in most California markets. These homes are often priced well and represent some of the best values.
REO's are far easier transactions than short sale properties. REO escrows are often completed in 30 days or less.
One problem the banks are having with properties in the Big Bear area is our member only MLS (Multiple Listing Service) access. Many local Realtors only see the properties that are listed in the Big Bear MLS and are unaware of REO properties that are listed in other areas. It really is a disservice to the bank that owns the property to not have the home listed in the local MLS. Access to these properties is sometimes difficult for local agents, because it can be difficult to connect with the agent that is out of the area to get the showing instructions.
One solution that works well in this situation is for the out of the area listing agent to team up with a local agent that is available and knowledgeable in the Big Bear Real Estate market.
Most bank owned properties have an addendum that is presented to the buyer as a counter offer. Usually the addendum reduces the contingency period for buyers inspections to 5 - 7 days. Most bank owned REO properties are sold "AS IS". Buyers that need a loan to purchase a Bank owned REO may be required to pre-qualify with the bank that is selling the property.
Just because a property is a REO doesn't make it a deal. Most are, but you still need to do the research and establish value. Some hit the market and have multiple offers in the first week, while others just sit. It is the same old story, pricing is the most important thing your Big Bear Real Estate agent can do to help make the sale.
First impressions are everything, so I would think that a little cleanup would benefit the seller (bank). having the utilities on and the yard cleaned up of debris will help a buyer see the potential of the property. I see quite a few of these properties that are literally trashed and no attempt is being made to do any cleanup. Without power or water it is difficult for the buyers to inspect the property.
Recently, I got a copy of an addendum on a bank owned property that states that the buyer will be responsible to pay for all aspects of the transaction and the selection of services. I told my buyer that we would just need to reduce our offer to accommodate these fees.
On another recent transaction with a bank owned property the bank chose the escrow company and selected a company that is 2 hours away from the property. I think that the banks are selling off the escrow rights to all of their properties in bulk. This nets the escrow and title company a predetermined / negotiated fee for each property and reduces service levels. The escrow company is very busy and doesn't seem to push things along, the bank has a Per Diem charge daily to the buyer if we don't close on time.
If you are looking at bank owned properties or short sale properties in Big Bear, be prepared to exercise patients once you find the property that you want to make an offer on.
Opportunities are abundant, but don't try to bring an out of the area agent to a location like Big Bear and expect to get the best deal or knowledge of the area. The Tim Wood Group sells Big Bear and we know the inventory and the Real Estate market that we work.
Steve Hirschler
Associate, The Tim Wood Group
Coldwell Banker Mountain Gallery
42153 Big Bear Blvd.
P.O. BOX 6820
Big Bear Lake, CA 92315
steve@bigbeargallery.com
909 866-3481 EXT. 217 CELL 909 725-5889
Fax 909 866-3531
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