REO sales and "Market Value"

[DMZwerg]

Well, who the heck was living in the house before it became an REO?

Well, obviously not the bank. :mellow:

If you had kept up on your RE license you would have probably encountered in CE the discussions about homeowners and Real Estate Condition Reports and how, if selling a property owned by a relative, the RE Agent could be "on the hook" for Adverse Facts and Material Adverse Facts not included in a submitted RECR or even if no RECR was submitted. Also in CE they would have likely mentioned about lenders and RECRs on REOs listed for said.

In other words, who was living in the house just prior to the listing, who can be held accountable for Adverse Facts and Material Adverse Facts, and the degree of liability and accountability, can vary based on the current ownership situation. A "traditional" seller can be (and often is) held accountable if there is information in a RECR that is inaccurate and said either did or should have known AND even if no RECR was submitted, whereas persons dead (estates) are generally held to a somewhat less strict standard (as some conditions could have developed since the heirs lived there) and lenders often to the least standard of liability (they can argue they "never" even wanted the property nor to be property owners let alone sellers and have not personally inspected the property ... their hired expert(s) did). Bottom line, it is truly a whole nother ballgame. Liability and the inability to regain loss is risk.

 

[residentialguy]

Okay BOY, now is your chance, show those neighborhoods with near 100% distressed sales along with data source.

Couldn't resist. Here's a neighborhood in NW Mpls. All distressed sales, with 6 flips and one non REO/ss on 2915 Fremont, which was a contract for deed.

I do find it interesting that investors would invest in properties that are selling at "Market value". I also find it interesting that they all sell over "market value". Wait, maybe they're buying REOs because they sell below market value and they can sell at market value and make a profit. :icon_idea: They're a little smarter than some appraisers.

 

[Terraform]

Making the claim of neighborhoods of near 100% distressed sales is just as good as doing the research?

Oaky male child, too much for you to substantiate that claim, I understand.

LOL, that is way more creepy.

 

[George Hatch]

Geez, I tend to forget what RE pricing is like in other areas of the nation.


It's all fun and games at $20,000 and $30,000. Almost anyone can play, whether they know what they're doing or not. What's the mortgage payment on a house like that? $150? No wonder they're paranoid about unknowns in the condition. A bad water heater could cost them 2 months rent.

You should possibly consider that happens with the REO seller attitudes and buyer stigma situation when we multiply those numbers by a factor of 10 or 20 or 30 and there's a bit more money on the line. More to lose and more to save. A bank walking away from $30,000 in loan losses there may easily be walking away from $300,000 in loan losses here. A buyer looking to reduce their housing payment to only half their net income might not be so reluctant to give serious consideration to the clean REO.

No snow = don't care if the house has been sitting vacant, too. Makes it a lot easier to approach condition situations on a WYSIWYG basis.

IRL there are different factors in play in various regions of the nation.

 

[Randolph Kinney]

Couldn't resist. Here's a neighborhood in NW Mpls. All distressed sales, with 6 flips and one non REO/ss on 2915 Fremont, which was a contract for deed.

I do find it interesting that investors would invest in areas that are selling at Market value. I also find it interesting that they all sell over "market value". Wait, maybe they're buying REOs because they sell below market value and they can sell at market value and make a profit. :icon_idea: They're a little smarter than some appraisers.

What happened to the big research project that was so time consuming that you needed to get paid for it?

How about that zip code? How about that GLA? How about that year built?

Just curious.

 

[Randolph Kinney]

LOL, that is way more creepy.

How about catamite? Now that's creepy.

 

[residentialguy]

How about that zip code? How about that GLA? How about that year built?

Just curious.

Not a zip code, just a neighborhood. As you can see at the bottom stating the parameter, there is no GLA, no style, no year built...that's all the sf homes that are selling in that neighborhood.

 

[Terraform]

How about catamite? Now that's creepy.

I had to look that one up in the dic. EEWWW! Why do you know that word!

 

[residentialguy]

I had to look that one up in the dic. EEWWW! Why do you know that word!

Wondering the same thing. Maybe he belongs to a club and read it from his first place trophy on the wall. :laugh:

 

[Terraform]

LOL, thats a thread stopper! I hope....