This past week was a first for me.  I have helped several buyers purchase short sales and REO's (bank-owned) properties this year.  Up until this week, the most they ever paid over list price was about $2,000. 

I have a fabulous client I have worked with in the last couple of months to purchase a home in Paso Robles.  The first home he bid on was a short sale.  He bid $21,000 (over the course of Counter Offers) above the list price and ended up with a back-up offer; not in first position.  Pretty disappointing...

The next home he bid on was an REO.  He bid $10,100 over the list price on his first offer, and we just found out yesterday that his bid was not accepted...  I have to say I am shocked and disappointed for him...  I was so sure this offer was above and beyond what the lender expected. 

So, I say to you:  If there is a home that is a short sale or REO and you really want it, make sure your REALTOR(R) does adequate comparables and don't try to underbid what the home is worth.  Otherwise, you may end up empty-handed... and very disappointed...

I think the lenders have gotten really serious about selling these properties as quickly as possible, and that includes listing them below what they are worth to encourage multiple offers.  In addition, I think buyers of these REO's are getting a lot more sophisticated about their offers and are not trying to get something for nothing like in the past.  Be prepared for your competition and expect multiple offers...

If you would like to search the MLS for listings, visit my website. If you have any real estate questions or general questions about Paso Robles or San Luis Obispo North County, please contact me via email or call me at (805) 235-0234 for more information.

It starts with a dream...