And where have we come from? We have come from REO, Real Estate Owned, and foreclosure/distressed inventory, that was a majority of the real estate listings on the Santa Clarita Market for sale, to a mere 12 active REO listings.
One of the things we spoke about on our Wednesday Hump Day Broadcast having to do with Foreclosures is verifying who the REO is owned by before you put pen to paper.
Searching for the homes and REO listings is not that hard, you just need the “proper” resources that have themselves grounded in the local Real Estate markets.
Several years ago – back in the Santa Clarita Foreclosure markets of 2009, 2010 and 2011, we observed the way in which buyers made their offers was contingent on who the sellers were.
When it came to the “straight out” bank owned real estate listings – we educated our buyers that the only thing that was going to get them into the property was going to be two things. The highest price and the best financing.
The highest price and the best financing was not always that cut and dry. There were variations of both. That is when the bank would judge one offer as compared to another to see which carried more positive weight.
Achieving that right amount of “positive weight”, was a true testimonial to an Experienced Foreclosure and REO agent. One that you would have wanted to hire during those years and even today.
Here are a couple of personal and experience based opinions about writing offers on Foreclosure and Bank Owned real estate that may have me making enemies with the Foreclosure Realtors in the world.
First – the banks always triple checked offers that the “REO listing agent” represented when they were also representing the Bank. That made it laborious when it came to the Sale Listing Agent representing the buyers on their same REO listings.
Second – the listing agent had very little to offer in the way of “convincing” the bank on which offer to accept. Sure, there were relationships made, but the Asset Manager would not be able to blame the real estate agent if things went awry or if they chose the wrong offer.
When it comes to making offers on real estate owned and foreclosure real estate listings, make sure you have your own and Foreclosure Experienced Representative. Reach out to us when you are ready and thanks for reading our latest Hump Day REO Wednesday Update.