Dear REO seller. You may no longer dictate the terms of the sale!

REO sellers have had too much power for too long!

Thanks for sharing what you've observed in your market. With a qualified Buyer we should definitely negotiate in their best interest.  Margaret C.

Richard,

Good news, and I hope the trend spreads.  Some of the stuff from banks is so high-handed that it drives the foreclosure market prices downward, affecting all around.

GOOD MORNING RICHARD!  It's about time for this change - I hope Buyer voices continue to speak loudly and effect even more needed changes!  Gab

The rules will change a bit or they will indeed be left with an inventory of decreasing values! Nice change in the weather!

Of course I too like the fact that the banks are finally getting spanked (greedy _ _ _ _ _ _ ) but it is a double edged sword for home owners wishing to sell and watching their value go down overnight up against these REO's.

Richard,

In my area, only the worst of the foreclosures are sitting. I'd love to see more unsold to force the banks to rethink their positions!

Interesting how areas are so different.  I am not seeing that in my area as of yet, but, I am not seeing the increase int REO's either.

I am thrilled at this shift.  Too many puffed up banker types who know nothing about our real estate market.

Richard,

The traditional supply and demand curve explains a lot about any real estate market. REO's are now seeing what traditional resales have seen in recent years.

Rich

In our immediate area, we just haven't been hit with REOs (different story 2 counties over, though) too much but the few I am seeing here and there seem to be in much better shape as the bank has already come in and painted, put in new carpet, replaced appliances.  Depending on the market, they are getting the message, I think.

Richard, 

We are continuing to see a challenging market here in Atlanta.  Sellers of any shape and size are fortunate to sell and will feel like they have to give on everything.  This is effecting the REO's as well.  If they are willing to play ball, they can sell, but they are NOT setting the tone.

All the best, Michelle

Love that more control has been given to buyers, a sign of things turning towards needed improvement and also hopeful for better economic improvement as well.  REO companies have often left money on the table with very poor handling of the process and unreasonable negotiations as well.  Thanks for the positive news for Monday!

Richard, this is good news to hear in your area...we have not experienced this shift yet but i expect it will change because there aren't a surplus of buyers anymore...best to you

HA!  That is all I have to say!  Great post, and great read.

And don't you just feel terrible for them?  Boo-hoo.  I say, it's about time they got what was coming to them. 

We have few REOs. 

Banks can pretty much get their price and terms around here.  

 

Richard it appears that in your area at least the worm has turned. Not all areas of the country have that good fortune, but homes are sitting on the market a lot longer so maybe Banks will finally catch on. There is always a reckoning for greed.

There are still more REO's to eventually hit the market too.  I think that many REO sellers are ho,ding off on releasing new properties until some more of the current ones are closed.