California REO rush

By
Real Estate Agent with Coldwell Banker Shepherd Group

The changes that I have seen in the last couple of weeks have been amazing. I have been writing offers for clients on bank repo's. Nine out of ten repo's have multiple offers on them. A lot of counter offers that I receive from the banks ask for my clients to come in with their highest and best offer to even be considered. Four homes I have written offers on have been on the market for less than a week. When it is a good deal the home goes quick. Many banks receive multiple offers on properties and actually wait to respond so that they can get as many offers as possible to review; it is in the banks best interest to wait. In Riverside, last month, 11% of the homes sold were bank owned and in Moreno Valley 25% were bank owned.

So why is there such a change in the market? Easily put, a lot of people have been sitting on the sidelines watching prices go down. But, now they are seeing prices and interest rates go down. After awhile it is too tempting to sit on the sidelines anymore. Some of my clients that I have been communicating with for over a year are finally ready to buy, and they are buying repo's.

Many first time buyers are rushing into the market to snatch up these great deals. The deals are not without some frustration. The bank could take 3 weeks to respond to you, the counter could ask you to give up a lot of guarantees, and you typically buy the property "as is". I know there is still bad news coming from the media, but we are seeing more positive numbers each month. I will keep you posted on what is happening. For those of you still sitting on the fence, don't wait too long. Once prices start to level out and home sales increase, interest rates will start to climb.

 

Sincerely Kevin Williamson with Coldwell Banker Shepherd Group www.williamsonteam.net

Comments (3)

DALIA KIBBY
Sellstate Partners Realty - Cooper City, FL
Selling Broward County Homes with Passion!
Now that California is seeing some activity, I hope we'll see some as well in FLorida (Florida seems to follow California in most things).  Good luck with those deals!
Apr 08, 2008 06:31 AM
Peter Wolf
Coldwell Banker - Valley Village, CA
Our open houses have been busy.  At one point last Sunday, we had 10 people milling through the house. Another person came to the door and I had to tell him to come in.  People are looking.
Apr 08, 2008 06:46 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

We're mining REOs, too....good for first time buyers with great credit, money down, ready to buy, want good dealss, plan to stay put for a while.

My open house (in Alameda) was very brisk the last two weekends ---- 20-30 groups came through each time. Buyers appear enthused about home prices being more realistic or right at market value. Many even lingered to chat (although there are still those who are mum and see realtors as predators).

Apr 08, 2008 06:51 AM