What is going on with the real estate pricing games? We have the following: Overpriced properties among abundant competition, Market priced properties among abundant competition, Under-priced properties among abundant competition. What's it all about? Price?
Consumers look at price first, then after looking at the competition, they realize it's a bit more complicated than just the price. If the property is in foreclosure, their may be issues associated with attainablility, response time and/or terms associated with the third party approval. If the property is foreclosed, their may be issues associated with attainability for certain types of buyers, certain types of financing and/or response time.
Buyers sifting through the general pool of inventory are becoming more aware of the issues associated with lender mediated properties, properties in foreclosure and already foreclosed bank/corporate owned properties. All of the properties appear to be for sale and appear to be attainable. However, many are simply not attainable because they are clearly overpriced and/or they are not approved to be sold in a short equity position.
More and more consumers are aligning themselves early with professionals who can handle lender mediated properties both in foreclosure or post foreclosure. The pricing strategies have evolved significantly in the past 2 years for all types of properties; including lender mediated foreclosures, REO Bank Owned Homes and conventional retail homes for sale.
Conventional sellers have realized that they need to be competitively priced among the lender mediated foreclosures and the bank owned REO's. Certain REO asset managers and/or banks have pricing strategies that step down in a 'Reverse Auction' format whereby they step down their Broker Price Opinion list every 30 days by 5 to 10 percent until they receive multiple offers. Some REO pricing strategies simply price their original list significantly below the average Broker Price Opinion to obtain immediate multiple offers that generally are well above the list price. Next comes the lender mediated 'Short Sales' that require lender approval. This generally means the buyer(s) submit their offer on a fire-sale priced property and await lender approval that may take 4 to 6 weeks for a response. Only to realize the response was a counter offer that may again take an additional 4 to 6 weeks response. Now another new pricing strategy is evolving in the Twin Cities marketplace as well as other market centers. New Construction financing companies who have taken back builder assets are beginning to fire-sale their 'white elephant' assets and coupling new build projects along side those assets at a slightly higher price. Wow, how ingenious! These construction financing companies are turning bad money projects into active marketplaces while minimizing their losses, carrying charges and hold times.
Consumers are clearly shopping in a perfect marketplace. Historic low rates and prices combined with flexible ownership options. The only missing piece for consumers is simple. A trained and experienced real estate professional who is experience with lender mediated properties and conventional properties.
EXIT Realty Executives (763) 548-1444
Buying Bank Owned Homes in Blaine, Coon Rapids or Anoka County Minnesota?
REO Bank Owned Sales are up 10.4% this Quarter!
Ex. Only 45 Bank Owned Homes Available in Blaine
The number of Bank Owned homes remaining in many suburbs of Minneapolis MN are declining. For example, in Blaine MN the inventory is down to 45 units and declining. Only 60 days ago, there were 80 Bank Owned Single Family Homes available for sale in Blaine, MN. With 35 sales in less than 60 days, there is an obvious increase in buyer activity focusing on Bank Owned Inventory. As of this posting here is a quick snippet of the available (single family homes) Bank Owned Homes For Sale in Blaine MN:
12 Homes Remaining between $71,000 to 15,000 3-4 Br 1-2Baths
10 Homes Remaining between $150-200k 3-5 Br 2 Baths
10 Homes Remaining between $200-300K 3-5 BR 2-3 Baths
8 Homes Remaining between $300-400K 3-5 BR 2-3 Baths
5 Homes Remaining between $400K + 3-5 BR 2-3 Baths
To obtain the details or the currentstatus of the available inventory or for homes that are soon to be listed by banks in the north metro area, contact me or your REO Broker today.
For those looking for indicators of a potential market swing, consider these: Over 40% of the Bank Owned Inventory sold in less than 32 days on the market. Approximately 59% of those sales were under $200k. The indicators here are obvious! There is more consumer confidence regarding price and the cost of borrowing money. First Time Homebuyers are purchasing the majority of these homes followed by the Investor pool. Real Estate Market indicators generally star us right in the face for a short while with most people paying very little attention. Think for a moment what may begin to happen when the first time pool of inventory begins to diminish. First time home buyers will be looking at strong entry points, the early bird buyers have already gained an equity position on their homes and the trickle effect begins to impact the step-up inventory in the same way. For those who say the market correction will take a few years, they are correct only from a global or national perspective. Each market center has their own dynamics as indicated in this particular municipality of Minneapolis, MN. From the above inventory statistics, here is another advantage for those early bird buyers. The ‘Days on Market' (DOM) for the pending and sold listings in the past two months was only 32 days. The DOM for the available bank owned single family homes are 128 days and the DOM for the homes that are not bank owned are 178 days. That means that many of the really ‘hot' deals fly into escrow (pending sold) very early in the listing period. How does this happen, are they impulse buying or do they have an REO Broker who knows about these deals well in advance of the properties becoming available to the general public? Clearly more and more consumers are realizing the importance of becoming the most informed consumer in their marketplace and the savvy buyers are aligning themselves with professionals who are engaged in both REO and retail inventory. When your or your sphere is ready to consult with an engaged REO Broker, you should consider calling me for a FREE consultation. That one hour consultation will empower your to make the right choices associated with developing your personal wealth with the real estate market. This includes our ‘Sellers Advantage Programs' that help our sellers regardless of their equity or short-equity positions in their current home. If you have any questions associated with the following, you may need to arrange your FREE Consultation with us:
The fact is, if any of the above questions concern you; I would be willing to meet with you to discuss your options. My specialty as an REO Broker is helping people with Short-Sale options and Bank-Owned Homes For Sale. Some people feel they can get a better deal surfing the ‘not-so-up-to-date' available properties for sale and driving around town calling the listing agents who typically do not answer the phones or post more than one photo on their listings. I cannot help foreclosure buyers who choose not to be helped. It would be my pleasure helping those wanting to get a great deal whether buying or selling real estate in the metro area.
I look forward to your call.
Frank D'Angelo REO Broker/SRS
EXIT Realty Executives (EXIT is your safe passage)
(763) 548-1444 (Single number reach will find me!)
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