REO’S are not that good of a deal anymore?

I've been seeing a lot of Banked-owned properties sell for more than there asking price. For the amount of work that needs to be done in them,  It's not a good deal any more. 

What do you think? 

Are you seeing the same thing in your area's.

  • November 09 2012 - Rio Vista
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Answers (3)

We have had a fair number of buyers this year and still have some that are currently shopping.  This year our buyers are not looking for REO deals.  We have buyers who have been in the market for awhile who may ask to see their 1st REO, but have yet to put it on their list for showings. 
  • November 09 2012
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Shai,

In my experience, foreclosure homes in the Fort Lauderdale area are generally priced at market value.  However, since there is a such a shortage of available homes for sale in the area, as you probably already know, home buyers enter into bidding wars that drive the price up.

Chad Gray PA, Realtor
Luxury Living Fort Lauderdale
Coldwell Banker Residential Real Estate

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  • November 09 2012
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I think there is a variety of things going on.

Many of the banks are doing a better job of getting properties in marketable shape, so they are in direct competition with traditional sellers. In fact, they are in BETTER shape than some of the neglected homes with deferred maintenance coming from homeowners.  

The banks are becoming easier to deal with in general. They seem to have streamlined the entire process, including allowing for closing cost, making lender required repairs, and even covering many costs if the buyer uses the banks closing companies. 

When you throw in the somewhat limited inventory, foreclosures are selling at market value.

  • November 09 2012
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