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Showing posts with label bank owned. Show all posts
Showing posts with label bank owned. Show all posts
Sunday, July 19, 2009
Tuesday, March 24, 2009
Moreno Valley Repo Lists
Thursday, March 5, 2009
Complete Corona Repo Lists
$0-100,000 (18)
$100,000-200,000 (59)
$200,000-300,000 (55)
$300,000-400,000 (50)
$400,000-500,000 (17)
$500,000+ (6)
I have decided to categorize the properties by price this time. I have also put the total number of REOs in that category in parenthesis. However, not all listing agents input their homes into the REO category. Therefore, a few bank owned homes may have fallen through the cracks. My data shows me that there are 205 bank owned homes in Corona. There are 1,352 homes on the market in Corona.
Riverside, Mira Loma, and Norco to follow.
$100,000-200,000 (59)
$200,000-300,000 (55)
$300,000-400,000 (50)
$400,000-500,000 (17)
$500,000+ (6)
I have decided to categorize the properties by price this time. I have also put the total number of REOs in that category in parenthesis. However, not all listing agents input their homes into the REO category. Therefore, a few bank owned homes may have fallen through the cracks. My data shows me that there are 205 bank owned homes in Corona. There are 1,352 homes on the market in Corona.
Riverside, Mira Loma, and Norco to follow.
Tuesday, February 17, 2009
Friday, February 13, 2009
Wednesday, January 28, 2009
Thursday, January 15, 2009
Short Sale or REO???
Prices continue to drop...interest rates continue to drop...people claim it is a buyers market. How come it takes SO long to get people into all of these homes?
Snapshot:
* a huge percent of the homes are the market are short sales or REOs (also known as lender owned, bank owned)
* a huge number of people can afford homes
* as long as rates stay low the buyers will remain
* as long as there is still toxic debt out there the prices will remain low (pardon me for believing that the government is ridiculous for thinking a bailout will work, oh, yeah...if it does...we will be back at the governments door in 3 years asking for a new bailout 3 times the size AND still owe for this one - was that pessimistic enough????)
(Back to the topic at hand)
Bank Owned homes:
1. Usually get answer in 24-48 hours
2. Usually has mutliple offers
3. Usually counters with "highest and best"
4. Usually can close in 30-45 days
Short Sales:
1. Usually takes 1-2 months to get an answer
2. Usually has multiple offers
3. Usually counters at market value
4. Usually does not close escrow (becomes a bank owned home) - a few months ago the stats were 4% short sales closed escrow
The last piece of information is that short sales have a HORRIBLE reputation. I speak with hundreds of people thinking about buying homes every month. Most of the time they have no idea what a short sale is (except some people think that the escrow is going to be fast - i.e. short). All they know is that short sales are evil.
Bank owned homes do not have nearly the same bad reputation...although, maybe they should. In Corona, CA, where I live and practice real estate the trend is such. Most bank owned homes sell for 2-10% over list price. They sell for this amount regardless of what the comps say. A comp is a comparable home sold in approximately the same time frame. However, short sales languish on the market because; banks do not know how to handle the huge influx in homes, the listing agent doesn't know how to process short sales, etc.
Take these two homes for example...
1447 Pinewood Dr, Corona, CA 92881
List Price - $399,000
Sold Price - $392,000
Price/Sq Ft - $120.43
Beds - 5
Baths - 4
Sq. Ft - 3,255
Lot Size - 7,405
DOM - 17
282 Mount Vernon Way, Corona, CA 92881
List Price - $399,000
Sold Price - $400,000
Price/Sq Ft - $147.11
Beds - 4
Baths - 3
Sq Ft - 2,719
Lot Size - 10,018
DOM - 98
Remember that banks set the price of bank owned homes. They set the prices low and hope that people will blindly bid against each other. They are banking on the fact that the buyers will not look at the comparable properties in the neighborhood and will only look at the current situation. Which looks like this, "we have received multiple offers, we need your highest and best". Therefore, people are willing to bid more than the property is worth (sounds a little like what happened in '05 & '06).
On the other hand short sales are starving for qualified buyers. They received multiple offers when the home comes on the market, but most of those buyers end up buying a bank owned home before the bank can approve the short sale. Often, the last offer standing (if there is one) gets the home. We saw this in the illustration above - people over paid for an older, smaller home. The Pinewood property is definitely the better home to purchase.
Eight months ago I would have told my buyers, "steer clear of short sales". However, today - the data seems to say that short sales are the better buy!
Snapshot:
* a huge percent of the homes are the market are short sales or REOs (also known as lender owned, bank owned)
* a huge number of people can afford homes
* as long as rates stay low the buyers will remain
* as long as there is still toxic debt out there the prices will remain low (pardon me for believing that the government is ridiculous for thinking a bailout will work, oh, yeah...if it does...we will be back at the governments door in 3 years asking for a new bailout 3 times the size AND still owe for this one - was that pessimistic enough????)
(Back to the topic at hand)
Bank Owned homes:
1. Usually get answer in 24-48 hours
2. Usually has mutliple offers
3. Usually counters with "highest and best"
4. Usually can close in 30-45 days
Short Sales:
1. Usually takes 1-2 months to get an answer
2. Usually has multiple offers
3. Usually counters at market value
4. Usually does not close escrow (becomes a bank owned home) - a few months ago the stats were 4% short sales closed escrow
The last piece of information is that short sales have a HORRIBLE reputation. I speak with hundreds of people thinking about buying homes every month. Most of the time they have no idea what a short sale is (except some people think that the escrow is going to be fast - i.e. short). All they know is that short sales are evil.
Bank owned homes do not have nearly the same bad reputation...although, maybe they should. In Corona, CA, where I live and practice real estate the trend is such. Most bank owned homes sell for 2-10% over list price. They sell for this amount regardless of what the comps say. A comp is a comparable home sold in approximately the same time frame. However, short sales languish on the market because; banks do not know how to handle the huge influx in homes, the listing agent doesn't know how to process short sales, etc.
Take these two homes for example...
1447 Pinewood Dr, Corona, CA 92881
List Price - $399,000
Sold Price - $392,000
Price/Sq Ft - $120.43
Beds - 5
Baths - 4
Sq. Ft - 3,255
Lot Size - 7,405
DOM - 17
282 Mount Vernon Way, Corona, CA 92881
List Price - $399,000
Sold Price - $400,000
Price/Sq Ft - $147.11
Beds - 4
Baths - 3
Sq Ft - 2,719
Lot Size - 10,018
DOM - 98
Remember that banks set the price of bank owned homes. They set the prices low and hope that people will blindly bid against each other. They are banking on the fact that the buyers will not look at the comparable properties in the neighborhood and will only look at the current situation. Which looks like this, "we have received multiple offers, we need your highest and best". Therefore, people are willing to bid more than the property is worth (sounds a little like what happened in '05 & '06).
On the other hand short sales are starving for qualified buyers. They received multiple offers when the home comes on the market, but most of those buyers end up buying a bank owned home before the bank can approve the short sale. Often, the last offer standing (if there is one) gets the home. We saw this in the illustration above - people over paid for an older, smaller home. The Pinewood property is definitely the better home to purchase.
Eight months ago I would have told my buyers, "steer clear of short sales". However, today - the data seems to say that short sales are the better buy!
Tuesday, January 13, 2009
Monday, December 29, 2008
Sunday, December 28, 2008
Sunday, June 1, 2008
Where is the best deal?
As we walked into the front door, the finely appointed furniture and the wood floors stood out to me. We had just been through four or five bank owned homes and this one was not. This home was being sold by some folks with a lot of equity who need to be closer to their kids school. We moved through the meticulously cared for rooms, the kitchen, into the fully landscaped backyard and marveled at the differences in the places we had seen that day. Absent were the mysterious odors, gone was the dust from another Realtor leaving a window open, there was no dead grass in the backyard...instead those things were replaced with candles, posters from kids favorite rock bands, antique furniture, and an amazing pool in the backyard. My clients fell in love.
My weeks are usually consumed by wandering in and out of many vacant homes throughout Riverside County (Corona, Riverside, Lake Elsinore, Murrieta, Temecula). Homes where you need to have a creative mind to see the potential of what might be. These homes are missing kitchens, they have holes in the wall, they have mangled carpet (or tile, or wood), dead grass in the front yard and no landscaping in the backyard, they have left behind desks in the garage and sometimes trash all throughout the backyard.
This dichotomy presents a big problem. My clients are looking for turnkey homes. They want to get the best deals AND they want the home to be perfect. Clients usually want Wal-Mart prices with Saks Fifth Avenue service. However, this place usually does not exist. And when it does, it is listed for $318,000 and sells for $385,000...true story of a home in Corona 6 weeks ago.
In today's market, buyers need to understand that turnkey means that there is a seller (not the bank) involved. A seller who measured their kids in the kitchen doorway. A seller who used to have Thanksgiving dinner in the dining room. A seller who had barbecues in the backyard for the Fourth of July. A seller who last year knew their house was worth at least 30% more than it is today. A seller who has a mortgage on this home.
The bank usually isn't too worried about the condition of the property. The bank cares about none of these things. The bank cares about one thing, the bottom line (which usually is 92% of market value).
As we walked out of the house, my clients looked at me and said, "we want this one."
I knew...I could see it in their eyes.
They made a decision that is so hard for buyers to make today. They made their decision based on the location of the property, based on the needs of their family, based on what they wanted. They wanted turnkey...and they paid top dollar for it. Most buyers want the best home in the neighborhood for less than the worst home in the neighborhood.
Unfortunately, they spend a lot of time looking at homes, writing a lot of low offers while someone else is moving into their home.
My weeks are usually consumed by wandering in and out of many vacant homes throughout Riverside County (Corona, Riverside, Lake Elsinore, Murrieta, Temecula). Homes where you need to have a creative mind to see the potential of what might be. These homes are missing kitchens, they have holes in the wall, they have mangled carpet (or tile, or wood), dead grass in the front yard and no landscaping in the backyard, they have left behind desks in the garage and sometimes trash all throughout the backyard.
This dichotomy presents a big problem. My clients are looking for turnkey homes. They want to get the best deals AND they want the home to be perfect. Clients usually want Wal-Mart prices with Saks Fifth Avenue service. However, this place usually does not exist. And when it does, it is listed for $318,000 and sells for $385,000...true story of a home in Corona 6 weeks ago.
In today's market, buyers need to understand that turnkey means that there is a seller (not the bank) involved. A seller who measured their kids in the kitchen doorway. A seller who used to have Thanksgiving dinner in the dining room. A seller who had barbecues in the backyard for the Fourth of July. A seller who last year knew their house was worth at least 30% more than it is today. A seller who has a mortgage on this home.
The bank usually isn't too worried about the condition of the property. The bank cares about none of these things. The bank cares about one thing, the bottom line (which usually is 92% of market value).
As we walked out of the house, my clients looked at me and said, "we want this one."
I knew...I could see it in their eyes.
They made a decision that is so hard for buyers to make today. They made their decision based on the location of the property, based on the needs of their family, based on what they wanted. They wanted turnkey...and they paid top dollar for it. Most buyers want the best home in the neighborhood for less than the worst home in the neighborhood.
Unfortunately, they spend a lot of time looking at homes, writing a lot of low offers while someone else is moving into their home.
Saturday, May 17, 2008
How hot is the market?
The sun is blazing as we arrive at our first home to tour. It is a spring day in Southern California, it feels like we are in the middle of summer. I glance down on my dashboard and catch a glimpse of the outside temp...106 degrees. My client climbs out of their truck, "I bet it is over a 100 degrees today," she says. We are about to tour our first home of the day and it is already after 2pm...with 10 more to follow. My day is really busy, with a 4:30pm and a 7pm appointment still ahead of me, so there is a little spring in my step. All of the homes on our list today are bank owned.
The first home is beat up. The carpeting is destroyed, the paint leaves a little to be desired, the house is covered in dirt because of the broken out windows. There is an empty pool in the backyard and the back fence is falling down. Not a great start to the day. Second and third home...more of the same. By the time we peer into our fourth home, we have no idea what to expect. The lot is huge. The house is a lot bigger than the previous homes. There is a lot of potential. "This one goes down as a yes," my client says as we depart for the next house.
We are standing across the street from the last house. She is huge...2,500 square feet. But, as usual with a bank repo...she is in need of some love (new carpet - the owners ripped most of it out, new paint, holes in a lot of the walls, etc...). "We want to offer on 3 of the homes that we have seen today," my client says as we are about to part company. Last week we found a home that they liked...but it was gone before we could get our offer submitted. They understand the sting of being so close. As do scores of my other clients. A few of them have resorted to writing offers in bulk, and hoping that one sticks.
I hear all the news about tighter lending restrictions...I hear all of the news about more bank repos coming on the market...I hear all of the news about the doom and gloom of the economy. BUT, in my little corner of the world...the real estate market is as hot as that Southern California sun!
The first home is beat up. The carpeting is destroyed, the paint leaves a little to be desired, the house is covered in dirt because of the broken out windows. There is an empty pool in the backyard and the back fence is falling down. Not a great start to the day. Second and third home...more of the same. By the time we peer into our fourth home, we have no idea what to expect. The lot is huge. The house is a lot bigger than the previous homes. There is a lot of potential. "This one goes down as a yes," my client says as we depart for the next house.
We are standing across the street from the last house. She is huge...2,500 square feet. But, as usual with a bank repo...she is in need of some love (new carpet - the owners ripped most of it out, new paint, holes in a lot of the walls, etc...). "We want to offer on 3 of the homes that we have seen today," my client says as we are about to part company. Last week we found a home that they liked...but it was gone before we could get our offer submitted. They understand the sting of being so close. As do scores of my other clients. A few of them have resorted to writing offers in bulk, and hoping that one sticks.
I hear all the news about tighter lending restrictions...I hear all of the news about more bank repos coming on the market...I hear all of the news about the doom and gloom of the economy. BUT, in my little corner of the world...the real estate market is as hot as that Southern California sun!
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