Prescott REO properties and Bidding Wars

More and more I am seeing Prescott bank owned homes being listed at prices that drive many competing offers to them. Often, multiple offers push the contract price up to the same level as retail sales. Today I am working with a buyer on one of these REO properties. By the time we finished with our "Highest and Best" offer for the bank, the price was above some of the retail listings in the same subdivision. I spoke with my client about the situation and suggested we spend a little more time comparing the home to other comparable listings.

In the end I think the buyer will stick with this property because it has the best location and upgrades available. But sometimes we just have to take a breath and do a reality check to make sure we have our client's best interests at heart.

Its also important to understand that just because a bank owned home is listed low and that an identical retail listing is listed higher, when the negotiations are finished they may often end up at the same spot. Of course this is not always the case, but when there are multiple offers on a property its something to keep in mind.

We can usually find REO homes here in the Prescott area that are priced just enough below the rest of the market that they are good deal without attracting a bidding war. Working with an agent who really knows the market can make all the difference for the buyer.

Dave Conners specializes in Prescott area REO homes with the Stephanie Woods Team