Looking through the REO listings currently for sale in the SCV cities has the most expensive, that just experienced a price reduction, tapping out at $639,900
That one is on Milhouse Drive in Valencia. http://blog.paris911.com/idx/mls-sr13168183-26572_millhouse_drive_valencia_ca_91350
When approaching the Foreclosures and Bank Owned inventory, there are a couple of things to consider.
Is the agent you are working with able to inform you as to how the banks operate? Is this by their experience with dealing with buyers of REO listings or by them themselves having worked(working) with an actual bank that is letting that Realtor handle their Foreclosure assets.
The other thing to consider is whether or not the market is climbing or reducing.
Because we have been to literally hundreds of hours of training with Citi Bank, and the Five Star Conference, we know how the REO banks operate when it comes to pricing real estate.
We have also sold over one hundred assets for Citi Bank as well, we know the inner workings when it comes to “offers chosen – how and why cash may not be the best advantage – and why a VA offer may be accepted above cash…”
In a declining market – the REO listing is going to be priced at a 90 day estimate of value. If the market is declining, then the listing’s 90 day estimate of value is going to be lower than the date the listing was given to the REO Agent.
If the market is increasing, then the price for that REO asset is going to be more expensive from the date of the listing contract that is sent to the REO real estate agent.
The critical question is exactly how much in each circumstance? Make sure you have your real estate agent cover these topics during their “crash course” on real estate before journeying out to view real estate listings that are for sale.