Going low with REO
By Glenn Roberts Jr., Wednesday, March 5, 2008.Bookmarking Sites
A post at the Trulia Blog features a map with stats on the median price of bank-owned properties that were acquired through a foreclosure process vs. the median list price of typical homes.
Bank-owned properties, also known as real estate-owned or REO properties, carry a lower list price in all of the U.S. regions, though the differences vary widely by region.
In the Midwest for example, there was a 43.9 percent difference between the median list price of $139,000 for homes at Trulia.com and the REO median list price (supplied by RealtyTrac.com) of $78,000. And that compares to a 1.2 percent difference in the South -- a $180,000 median list price for homes at Trulia.com vs. a $177,900 median list price for REOs.
The difference in list price vs. REO list price in the Pacific Nothwest and Southern California regions was about 24 percent. Agents know that not all REOs are created equal, though, as some properties may have been vandalized (or worse) during the foreclosure process, and the transaction process can be lengthier for REO properties than for standard sales.
All rights reserved. This article may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this article without permission is a violation of federal copyright law.
You must login or register to post a comment.
Submitted by Chris Burdzy on March 3, 2008 - 8:23pm.
I recently signed up on the RealtyTrac site for their free trial, and found out that many of their so called "foreclosure listings" are merely homes with a lis pendent notice, and those homes' prices quoted are based on the owner's firt mortgage outstanding(?) amount. I find that very misleading, since most of these homes are not readily available for sale, and those prices are pulled out of a hat. Thus the median prices based on their data are probably as good as the TV weather reports.
Submitted by Leslie Tucker on March 4, 2008 - 4:35pm.
Glad you told me that, I almost signed up as an exclusive territory agent... Thanks.
Submitted by Christopher Mancini on March 6, 2008 - 1:55pm.
All around I do not trust RealtyTrac's listings or data.