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OFFERS ON REO and SHORT SALE PROPERTIES

March 3, 2010

The market is really tight right now, with less than an average of 3 months inventory in our market area: Clayton, Pittsburg/Bay Point, Antioch, Oakley, Brentwood, Discovery Bay and Bethel Island.  There has been an average of 408 closed sales per month with only 900 on the market right now.  The good news is that there are 2744 pending sales as of today per our EBRD MLS system; 55% of these or 1552 homes are short sales while only 616 REO sales are pending.  This is remarkably different, almost entirely opposite, from previous data where 50% of sales have been REO and 24% were Short Sales.  The issue with the short sales is whether they will actually close or revert to REO.

 What this tells me is that we will be working with Short Sales and Bank Owned property sales for some time to come.  So, when writing offers, make sure your offer is the best one on the table.  The following 4 ideas need to be considered when writing an offer on any short sale or REO: 

 Price:   Check comps, present a reasonable offer, neither inflate nor deflate the price

As-Is:   Do not expect repairs to be done unless . . . .

Ask:       Does my loan, my expectations of the property match my qualifications?

Title:     Seller’s title or Buyer’s Title; consider using the Seller’s title company

 I will be updating Offer Information in future blogs or check my website for a power point presentation called Buyer Presentation-Offers on Short Sales and Bank Owned Properties.

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