Be Careful.

By
Real Estate Agent with Muljat Group
I have many clients come to me and say that they only want bank owned properties. Each time I look up bank owned properties I find that there are better homes for the price on the regular market. Of course, from day to day this can change, but it is important to know that buyers are limiting themselves if they are only looking for bank owned properties. This may not be the best investment.
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Ambassador
528,781
Rich Jacobson
Keller Williams West Sound Realty - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
Shannon, greetings from the Kitsap Peninsula! What is your client's reasons and rationale for wanting bank-owned properties?
Dec 01, 2006 02:05 AM #1
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2,392,175
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I get them regularly.  They have been suckered into thinking that anything that is a bank owned property will be a good buy.  Everyone is looking for a good buy. 

Sell it to them.  Sometimes you can't save people from themselves.  Bank owned properties are no different from other properties except that they are bank owned.  They are priced based on the bank's appraiser.  They are often discounted for condition.  They are listed with agents just like us.  No difference.  No matter.  Just sell them.

 

 

Dec 01, 2006 07:33 AM #2
Rainer
150,580
Cynthia Sloop
Community Association Manager - Indianapolis, IN
So true, so true!  People have a mistaken idea that they will get the deal of a life time with a repo.  I've found that sometimes the bank (being out of area) is unrealistic about the price they are selling the home at and the house comes with so many unanswered questions about what works and what doesn't. 
Dec 01, 2006 07:50 AM #3
Rainer
11,204
Sean Dankers
Realty World Select - Fredericksburg, VA

We get a lot of people coming in and wanting to see REO's and pre-foreclosures.  They have the idea that they are going to get a steal if they can pick one of these properties up.  We sit them down and show them homes that meet their criteria and also show them the so called bargains they came in for.  Sometimes they see the light...

Dec 01, 2006 08:04 AM #4
Rainer
51,429
John Hruska
Homes Charlotte, LLC - Charlotte, NC

Shannon,

I have definitely noticed this in our marketplace.  Thanks for sharing what's going on in yours. 

 

Dec 01, 2006 12:57 PM #5
Anonymous
Anonymous
Shannon

I think it is great that people are trying to get a good buy if they think it is possible. I love that people want to continue to invest in Real Estate. I have seen a few great deals our there, but they are few and far between. When I get concerned is when the clients wants to only look at bank owned and not allow me to show them other good value properties. Things are really normalizing in Bellingham so the prices are looking good all around.

 Thanks for all of your responses.

Dec 01, 2006 03:42 PM #6
Rainer
19,509
Dixon Team OC
RE/MAX Select One - Huntington Beach, CA

I love the post!  This is so true.  I currently have over 25 REO listings, and would only recommend 3 or 4 to clients.  The banks are using appraisals for pricing, and are behind our declining market.  A desperate seller with equity beats a bank owned listing everytime.  There are REO deals out there, but they need to be searched for quite thoroughly!

 Check out my rant today about the short sale bait and switch with pricing! http://activerain.com/blogs/kdixon

Thanks,

Ken Dixon  www.DixonTeamOC.com

 

Nov 16, 2007 10:20 PM #7
Rainmaker
131,636
Bill Exeter
Exeter 1031 Exchange Services, LLC - San Diego, CA
1031 Tax-Deferred Exchange Expert
Not to mention that negotiating wiht a bank can drive you crazy! 
Dec 14, 2007 03:49 PM #8
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Shannon Neufeld

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