The $64,000 is, are REO properties the great bargain that the public perceives them to be? In order to study this question I have reviewed the sales data for REO properties in my local area for the past five months. THis is the first report, covering the area for August 2007.
Like any other property, the longer an REO stays on the market, the lower the price tends to be. However, once the property hits the correct price point there tends to be little flexability from the seller. In one case the property sold for $ 50,100 more than the asking price. One would suspect that the seller credited the buyer with funds to comnplete needed repairs.
In this sample the average sales price turned out to be 100% of the final listing price. Granted the sample is not large enough to be statistically significant. However, as I track this over a longer period the trends will be interesting to follow.
The sold REO cost per square foot is consistently below that of the total sold property population. This may or may not be attributed to property condition issues.
Folsom/El Dorado Hills Sold REO Properties August 2007
City DOM Original Listing Price at SP as % of SP as % of
Listing Price Time of Offer Sold Price Original Price Final Price
1 Fol 21 $349,999.00 $349,369.00 $349,369.00 99.82% 100.00%
2 Fol 34 $383,900.00 $383,900.00 $380,000.00 98.98% 98.98%
3 EDH 112 $464,900.00 $409,900.00 $398,900.00 83.87% 95.12%
4 EDH 14 $459,900.00 $459,900.00 $440,000.00 95.67% 95.67%
5 Fol 17 $494,900.00 $443,900.00 $443,900.00 89.69% 100.00%
6 Fol 6 $449,900.00 $449,900.00 $500,000.00 111.14% 111.14%
7 EDH 5 $514,900.00 $514,900.00 $509,000.00 98.85% 98.85%
Averages 30 96.9% 100.0%
REO Sold Cost Per Square Foot: $200.00
Total Sold Cost Per Square Foot: $232.00
Total REO Sold 7 (6.4% of Total Sales)
Total Number of Homes Sold in August in This Area 110
Are these REO properties a bargain? You will have to decide.
I will continue to report these results monthly.
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