Just another typical day looking at foreclosures deals for my clients. What distinguishes these homes from others on the market? How about a sales price that is $20,000 - $50,000 less than the "non-distressed" properties currently for sale in the same neighborhoods! REO's need carpet replacement, paint, overall cleaning, and yard work. Is the effort worth the price? Absolutely! Have a look at these four properties, 2 of which my clients are making offers on -- for even less than the current REO asking prices.
All four of these homes:
- are between 1,900 and 2,400 sq ft
- have 4 bedrooms and 2 bathrooms
- are between 4-8 years old
- need carpet and paint
The list prices for these homes ranges from $175,000 to $210,000. Granted, the $175,000 was listed low to attract multiple offers. Before these homes were reclaimed by the lenders at the public auction, each sold to the former owners in the range of $240,000 - $270,000.
This information is not going to surprise anyone who has been paying any attention to this market. This information should serve as a reminder to "non-distressed sellers" that they should either take their homes off the market or lower their asking prices. A person who is ready, willing, and able to buy -- when given the choice of similar products -- will buy at $88 per-sq ft ... but not at $120 per-sq ft. Reducing the number of homes for sale will contribute, at lease in a small way, to helping us find the bottom of this market. I can still remember nine years ago when the average number of homes for sale in the MLS was about 20,000 (instead of 50,000+).
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