Portola Hills Market Update 3/1/08

Portola Hills eNews

As you can see there are some great properties available currently. Should you know anyone looking to move to the area, please make sure to contact Kelly to review the best deals on the market?

Are you ready to buy an REO? In was speaking with a buyer the other day; something they mentioned stuck with me and I thought hmm, this a good topic to review.

First so we have a clear understanding of what an REO property is; REO stands for Real Estate Owned property. Meaning a bank or investor took back this property from a seller either via an agreement or after foreclosing.

As I was speaking with this buyer about what they were looking for in their new home, came out "we are only interested in buying a REO property", with great interest I had to ask why this limitation and out it came, "because we can get the best deal"

Ok, so let's get down to the nitty gritty. Why would a buyer assume a bank is going to take less then market value? It's a bank! They are in the business to make money! So with them present, we reviewed comps, determined a low asking price and called 5 homes listed and spoke with REO agent. Out of the 5 homes called, one agent advised the bank is willing to negotiate but they already had 10 offers in. All four other properties noted, and this is key, the bank has received several low ball offers, but was keeping the home, on the market fully anticipating it would get market price based on the last sold comps. My buyers were very shocked.

So we then looked at several other homes that were not REO or short sales properties but priced well as the seller needed to move but was not desperate. We ended up finding a great home, priced below market with the seller helping with closing cost.

The point of sharing this story is because we often here this assumption regarding REO/Short Sale properties being the best deals, but in fact they are often not. In addition, with an REO keep in mind you are buying a home AS-IS. The bank does not have any disclosure information from the previous seller. Yes, you can get an inspection which is recommended but that does not always tell you what is behind that wall, if you no what I mean.

It is not our goal to dissuade anyone from considering these properties. We just hate to see buyers limit themselves to only these types of properties when the market is full of other viable opportunities.

In closing, if you know anyone who is having a difficult time with their home, please call us. We are seeing a lot of fear based listings on the market when if we can just calm the nerves of sellers we may be able to help them keep their homes. It is Kelly's goal to provide a trusted helping hand vs. focusing on just getting a listing. If we can find a way to help the homeowner save their home we will!

Open House March 1^st and 2^nd: 28711 Pendleton Dr. Portola Hills. 3 bedroom with loft/2000 sq. ft and priced to sell $535,000

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Trabuco Canyon, Mission Viejo and Rancho Santa Margarita. Whether she's helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up into a nice home or use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you're considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, It's Possible!

The above information is provided as a courtesy and is deemed reliable but not guaranteed.

Kelly's Quick Links:

Kelly's Hot Properties

Free Orange County MLS Search