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Winnie, Winnie

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Winnie, Winnie, the REO Owner with your BPO



Just finished up an REO. The “Realtor” tells me she brought the subject in at $59,000. Wants to know what I think and will I be around that number. That about where her people think it should be.

Well lets see, subject on the block and with in two blocks are less have sold in the last six months $100K, $112K, $111K and $115K. Listing are $105, $112K, $114K and $116K. The subject has about $15K at most in repairs and clean up, that including a new roof if you elect to do one before selling. So my projected selling with in 90 days would be around $75K to $80K as she sits. Repaired with new roof, $95,000 in 90 days. Hundred twenty day $105K. It sold in 2000 for $64K has a current loan of $110,000.

Do you thing the “Realtor” is trying to Winnie the REO owner and buy it as a future flip and double their money ??? It sure appears that way. Could it be a “Realtor” who just does not understand what she is looking at????
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
What I want to know is why people always "bring it in" as if they are the jockey in a horse race.

Webbed.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
What I want to know is why people always "bring it in" as if they are the jockey in a horse race.

Webbed.


Spent forty years in the horse business. Most of the time its a race to the bottom.

But I was thinking more like fishing, got to bring in that big ole carp or sucker.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Either the Realtor doesn't know squat or they are planning on a purchase, fix up and sell to make their living for this month!
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
Typical Broker low ball.Happens all the time in the REO biz.Broker low balls to the lender so uncle Charlie can purchase and flip the house for a tidy profit , why work for a living..
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Ray, I'd turn down that appraisal request and make an offer. :)
 

Damon Pedersen

Junior Member
Joined
Jan 18, 2002
Professional Status
Certified General Appraiser
State
Iowa
Same around here, the REO listings get listed low and the Realtor has a buddy who buys it, fixes it up and then re-lists with the same agent.

Or, the Realtor lady just wants it listed low so it does sell and sell quick so she has fewer showing, less time, etc. and a quicker pay check.

What I can't figure out is why they even pay for an appraisal and even if the appraisal (from an independent party) is $10,000 higher than the broker's BPO, they still list at the BPO price.
 

Tony in Ohio

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
Are any of the comps REOs?

I am seeing a similar spread in some areas between REO homes that need minimal/cosmetic repairs and Non REO properties that are not all that much better. I am doing one today for the purchase at $75,000 where the most similar Non REO comps are around $120-130,000.

My first thought was low ball too, but the home was originally listed at around $110,000 and it sat for months. I am still working on it so I may turn up something else, but a lot of it is going to be there are so few qualified buyers in this particular market, and most of those do not want to do any work on the house.

I dont think it is smart, but who said buyers are always smart.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Are any of the comps REOs?

I am seeing a similar spread in some areas between REO homes that need minimal/cosmetic repairs and Non REO properties that are not all that much better. I am doing one today for the purchase at $75,000 where the most similar Non REO comps are around $120-130,000.

My first thought was low ball too, but the home was originally listed at around $110,000 and it sat for months. I am still working on it so I may turn up something else, but a lot of it is going to be there are so few qualified buyers in this particular market, and most of those do not want to do any work on the house.

I dont think it is smart, but who said buyers are always smart.

Yeah Tony, I'm making a decent living off REO's now because people want to see pretty houses with fresh paint. Even as a broker when people say they want to look at foreclosures, 99.9% are instantly turned off by necessary cosmetic repairs and smells. I guess the task seems too daunting, or they just don't have "the vision" of what it could be. Fine by me...that's how I get paid now daze. :)
 
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