As and REO agent I have first hand knowledge how the banks work, how they arrive a their price and what it takes to get an offer accepted by them, yet I still get buyers everyday who contact me stating they want to find a house 40-50% under market value.

Guess what people most likely isnt going to happen and here's why. Banks have the properties appraised whether it's by another agent or an appraiser either way they get fair market value. Based on the condition of the property and the AS-IS terms they will price their property slightly below market, generally no more then 15%. Now if the home is properly priced it should sell in the first week to two weeks of being on the market.

A bank is not going to price a home 40-50% under current fair market value because it can be sold at fair market value and they are most likely taking a 40-50% hit off the note value. So when you hear these late not informercials talking about getting a property 40-50% below value, they are most likely talking about note value and not fair market value, well unless the house needs to be torn down that's another story

So just to back up my story with facts here are the most recent Bank Owned Properties in Lake Mary and what they have sold for in the Month of February. Note the ratio on list price to sales price.

REO properties in Lake Mary and Orlando are hot ticket items. The closer to market value a property is listed for the quicker it sells and for almost list price, but either way. These are all 11 bank owned sales in the month of February for Lake Mary, not a single one sold for 40-50% under market value.

If you are thinking about purchasing bank owned or REO properties in Lake Mary and the surrounding areas make sure to have an expert on your side, especially one who has first hand knowledge of how banks operate. Choosing the right agent could be the difference between getting a deal and just wasting your time.