Defaults and Foreclosures continue to plague the real estate industry.
Research suggests they will continue to affect the market through 2013.
Banks are metering out inventory as best they can to balance the need to
reduce their holdings with their desire to not crush the value of the
rest of the community real estate. Dumping too many into the market at
one time could significantly depress a fragile housing recovery.
If you are considering buying an REO (Real Estate Owned property that the
bank has gained through foreclosure) realize that there is currently a
significant demand for forclosed property because of the great deals offered.
Here in St George we frequently see multiple offers on bank owned properties under $250,000.
The time to buy has hardly been better and buyers know they stand to gain equity quickly
on many of these purchases. You need a strategy in your offer that gives
yours the best chance of success.
These Charts are Washington County, Utah Closings for the last 30 days. All of the Data is from the WCBR MLS. Some transactions occur each month that were not listed. These charts are provided to highlight trends and should not be used to place a value on individual properties.
Banks will normally get both a Broker's Price Opinion (BPO) and a
professional appraisal. With this information they can confidently price
them to move quickly. Do your research. Know what a good price is. Don't
burden yourself with a series of offers way under the list price. Your
chance of success is low, and you stand a good chance of having to settle
for your second or third choice of properties. In most cases you will
find the REO list price is a great deal. If it is strictly an investment
and property choice is not paramount, you should consider the short sale
properties.
Pricing per Square Foot for property sold in Washington County Utah in the last 30 days. Individual values will vary considerabley per specific property.
Another misconception is that cash is king. Not so. Banks will require a
verification of funds for a cash deal or a preapproval document for a
loan. They will not give either one much preference. The best bottom line
is their goal. Make an offer very near or even above the list price, that
is where most are selling. If multiple offers come in at the same time
they might ask for a "highest and best" offer. Have in mind the best
offer you are willing to put on the table. Lastly, keep your offer clean
and avoid addendums and lists of demands. You will end up with a "Bank
Addendum Counteroffer" anyway that supercedes most of the elements of the
contract you sent them.
Washington County ,Utah. These sold above and below the asking price by these percantages. Again, the data is from the local MLS and are representative only of the current activity.
Don't feel like you are giving up all your chips. The point is that price
is the only significant element to the bank and other details are
extraneous. Give them a clean contract and a good price. (Get good
comparables so you are confident in your value!). If you know the market
you can land a great property at an exceptional price!
Give me a call at 435-862-8020 or email me at phil@philbradbury.com with
questions. Go to www.philbradbury.com for more real estate advice.
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