Mike West

REO Sales Data for El Dorado Hills & Folsom, CA January 2009

This post continues my study of REO (Bank Owned) home sales in El Dorado Hills and Folsom, CA. for January 2009.

The number of REO properties sold in the subject area in January was 26, down from 32 in December.

The average days-on-market increased significantly to 70, up from 29 the previous month. One home in El Dorado Hills sold after being on the market for 458 days. There were four others that sold in January that had been on the market for over 100 days. These homes added significantly to the overall days-on-market average.

Only 19.3% of the REO homes that sold in January sold in less than 14 days, a big drop from December. Also 11.6% of the REO homes sold in less than 7 days. That was also a drop from December.

Of the 60 homes that sold in the area in January, 26, or 43.4% were REO properties. This percentage is up from 36% in December and the first time that REO dales have exceeded 40% of the total number of homes sold in the area.

Of all REO properties sold, 27% sold for the asking price or more, a small decrease from December. One sold for 103.45% of the final asking price. The best deal was a home on the market for 79 days that sold for 88.88% of the final asking price. The banks are not dropping their prices on most of these REO properties.

The average cost per square foot for all homes in the area sold in January dropped slightly to $ 178.00. The average cost per square foot for REO properties decreased to $ 160.00, down nine dollars from December. That still equates to a 10% reduction in cost for those who purchased REO properties. Note that these figures are considerably lower than they were in January of 2007, when the cost per square foot for all properties sold was $ 206 and for REO properties at $ 188. This represents an overall drop in cost of almost 14% in the past year.

REO properties continue to be a good buy. However, one must still factor in condition issues and the associated repair costs before making an offer.

Specific Data follows:

REO Sales Data for El Dorado Hills & Folsom,CA December 2008

This post continues my study of REO (Bank Owned) home sales in El Dorado Hills and Folsom, CA. for December 2008.

The number of REO properties sold in the subject area in December was 32, one less than in November.

The average days on market dropped significantly to 29, down from 49 the previous month. One home in El Dorado Hills sold after being on the market for 219 days. That was the only property sold that had been on the market for more than 100 days. The old inventory is being cleared out and there are less REO properties on the market for a long time, even when the condition as an important issue.

A full 46.9% of the REO homes that sold in December sold in less than 14 days, up from previous months. Also 24.3% of the REO homes sold in less than 7 days. The REO market has really heated up.

Of the 89 homes that sold in the area in December, 32, or 36% were REO properties. This percentage is up from 35.50% in November.

Of the REO properties sold, 28.2% sold for the asking price or more, one for 150.71% of the final asking price. This is the largest premium we have seen since we have been monitoring these REO sales. The best deal was a home on the market for 19 days that sold for 85.3% of the final asking price. The banks are not dropping their prices on most of these REO properties.

The average cost per square foot for all homes in the area sold in December dropped slightly to $ 182.00. The average cost per square foot for REO properties increased to $ 169.00, up two dollars from December. That still equates to nearly an 8% reduction in cost for those who purchased REO properties. Note that these figures are considerably lower than they were in December of 2007, when the cost per square foot for all properties sold was $ 212 and for REO properties at $ 194. This represents an overall drop of almost 14%.

REO properties continue to be a good buy. However, one must still factor in condition issues and the associated repair costs before making an offer.

Specific Data follows:

REO Sales Data for El Dorado Hills & Folsom, CA November 2008

This post continues my study of REO (Bank Owned) home sales in El Dorado Hills and Folsom, CA. This blog covers November 2008.

The number of REO properties sold in the subject area in November was 33, three less than in September.

The average days on market dropped to 49, down from 55. One home in El Dorado Hills sold after being on the market for 217 days. There were also five other homes on the market for longer than 100 days. However, the old inventory is being cleared out and there are less REO propertied on the market for a long time, even when the condition as an important issue.

Only 42.5% of the REO homes that sold in November sold in less than 14 days, UP considerably from previous months. Also 21/3% of the REO homes sold in less than 7 days.

Of the 93 homes that sold in the area in November, 33, or 35.5% were REO properties. This percentage is up from 30% in October.

Of the REO properties sold, 60.6% sold for the asking price or more, one for 108.4% of the final asking price. The best deal was a home on the market for 77 days that sold for 69.23% of the final asking price. That property was unique and does not appeal to most buyers. It is the only property that has sold for less than 75% of the asking price in the past 18 months.
The average cost per square foot for all homes in the area sold in November dropped slightly to $ 186.00. The average cost per square foot for REO properties also dropped to $ 167.00. That still equates to nearly a 10% reduction in cost for those who purchased REO properties. Note that these figures are considerably lower than they were in November of 2007, when the cost per square foot for all properties sold was $ 219 and for REO properties at $ 188. This represents an overall drop of 15%.

REO properties continue to be a good buy. However, one must still factor in condition issues and the associated repair costs before making an offer.

Specific Data follows:

This post continues my study of REO (Bank Owned) home sales in El Dorado Hills and Folsom, CA. This blog covers October 2008.

The number of REO properties sold in the subject area in October was 39, one less than in September.

The average days on market increased slightly to 55. One home in El Dorado Hills sold after being on the market after 429 days. That sale obviously had an impact on the average days on market for the month. Four others sold after having been on the market for over 100 days.

Only 26% of the REO homes sold in October sold in less than 14 days, down from 35% in September. Also 12.9% of the REO homes sold in less than 7 days in October.

Of the 130 homes that sold in the area in October, 39, or 30% were REO properties. This percentage is down slightly from September.

Of the REO properties sold, 53.9% sold for the asking price or more, one for 107.18% of the final asking price. The best deal was a home on the market for 184 days that sold for 86.25% of the final asking price.

The average cost per square foot for all homes in the area sold in October increased slightly to $ 194.00. The average cost per square foot for REO properties also increased to $ 175.00. That still equates to nearly a 10% reduction in cost for those who purchased REO properties.

REO properties continue to be a good buy. However, one must still factor in condition issues and the associated repair costs before making an offer.

Specific Data follows.

		DOM	Original Listing Price	Listing Price at Time of Offer	Sold Price	SP as % Original Price	SP as % Final Price
1	Fol	9	$ 184,900.00	$ 184,900.00	$ 185,000.00	100.05%	100.05%
2	Fol	89	$ 234,900.00	$ 219,900.00	$ 207,000.00	88.12%	94.13%
3	Fol	32	$ 209,900.00	$ 209,900.00	$ 209,900.00	100.00%	100.00%
4	Fol	12	$ 263,900.00	$ 263,900.00	$ 263,000.00	99.66%	99.66%
5	Fol	25	$ 276,000.00	$ 276,000.00	$ 278,000.00	100.72%	100.72%
6	EDH	16	$ 274,900.00	$ 274,900.00	$ 279,000.00	101.49%	101.49%
7	Fol	10	$ 289,900.00	$ 289,900.00	$ 288,200.00	99.41%	99.41%
8	Fol	10	$ 289,900.00	$ 289,900.00	$ 289,000.00	99.69%	99.69%
9	Fol	8	$ 279,900.00	$ 279,900.00	$ 300,000.00	107.18%	107.18%
10	EDH	82	$ 359,900.00	$ 330,297.00	$ 325,000.00	90.30%	98.40%
11	EDH	10	$ 315,000.00	$ 315,000.00	$ 325,300.00	103.27%	103.27%
12	Fol	6	$ 325,000.00	$ 325,000.00	$ 327,000.00	100.62%	100.62%
13	Fol	12	$ 332,800.00	$ 332,800.00	$ 336,220.00	101.03%	101.03%
14	Fol	68	$ 335,000.00	$ 349,000.00	$ 340,000.00	101.49%	97.42%
15	Fol	18	$ 340,000.00	$ 359,900.00	$ 365,000.00	107.35%	101.42%
16	FOl	54	$ 340,000.00	$ 340,000.00	$ 340,000.00	100.00%	100.00%
17	EDH	184	$ 409,900.00	$ 399,900.00	$ 344,900.00	84.14%	86.25%
18	Fol	19	$ 345,900.00	$ 345,900.00	$ 345,000.00	99.74%	99.74%
19	Fol	78	$ 370,000.00	$ 370,000.00	$ 350,000.00	94.59%	94.59%
20	EDH	429	$ 455,000.00	$ 432,250.00	$ 403,000.00	88.57%	93.23%
21	EDH	50	$ 419,900.00	$ 419,900.00	$ 408,850.00	97.37%	97.37%
22	EDH	39	$ 424,900.00	$ 409,900.00	$ 409,900.00	96.47%	100.00%
23	Fol	14	$ 399,900.00	$ 399,900.00	$ 412,000.00	103.03%	103.03%
24	EDH	39	$ 441,100.00	$ 441,100.00	$ 438,000.00	99.30%	99.30%
25	EDH	5	$ 440,000.00	$ 440,000.00	$ 440,000.00	100.00%	100.00%
26	EDH	91	$ 529,000.00	$ 469,900.00	$ 464,000.00	87.71%	98.74%
27	EDH	15	$ 455,900.00	$ 455,900.00	$ 467,000.00	102.43%	102.43%
28	Fol	8	$ 470,000.00	$ 470,000.00	$ 500,000.00	106.38%	106.38%
29	EDH	31	$ 526,900.00	$ 526,900.00	$ 505,000.00	95.84%	95.84%
30	EDH	170	$ 689,900.00	$ 564,900.00	$ 564,900.00	81.88%	100.00%
31	Fol	27	$ 489,900.00	$ 489,900.00	$ 516,000.00	105.33%	105.33%
32	Fol	16	$ 599,999.00	$ 599,777.00	$ 525,000.00	87.50%	87.53%
33	Fol	24	$ 549,900.00	$ 549,900.00	$ 525,000.00	95.47%	95.47%
34	EDH	179	$ 594,000.00	$ 560,000.00	$ 530,000.00	89.23%	94.64%
35	EDH	56	$ 609,900.00	$ 567,200.00	$ 560,000.00	91.82%	98.73%
36	EDH	114	$ 646,000.00	$ 569,900.00	$ 569,900.00	88.22%	100.00%
37	EDH	76	$ 604,900.00	$ 564,900.00	$ 575,000.00	95.06%	101.79%
38	Fol	1	$ 599,000.00	$ 599,000.00	$ 627,750.00	104.80%	104.80%
39	Fol	14	$ 699,000.00	$ 699,000.00	$ 725,000.00	103.72%	103.72%
AVE.		55				97.4%	99.3%
REO Sold Cost Per Square Foot:	$ 175.00	90.20%
Total Sold Cost Per Square Foot:	$ 194.00
Total Number of REO Homes Sold in October	39	30.0%
Total Number of Homes Sold in October	130

How can I get the best deal on a home? Where do I start? Part 6

If you are still with me at this point-and still awake-you are doing

well. Home financing is not the most exciting topic, but it is very

important to those who are about to make a long term commitment.

It is very confusing. If you are lost, join the crowd. Find a loan

consultant that you trust and ask lots of questions.

At this point you should be aware of the type of loan that will work

best for you and after your consultation with your loan consultant

you will know what price range you can afford.

It is a good time to select an agent to help you identify the perfect

home and help you complete the purchase. Note that a licensed

agent in California does no have to be a Realtor®. I Realtor® is

a licensed agent who is a member of the National, California and a local

associations of Realtors®. They subscribe to a strict code of ethics

and are committed to providing the highest standard of representation for

their clients. I recommend that you select a Realtor®.

Another important aspect real estate law is a concept known as agency.

To put it into simple terms, an agent can represent a buyer, they can

represent a seller AND they can represent a buyer and seller in the same

transaction.

Most properties are entered into the local MLS (Realtor's® Multiple

Listing Service) in order to gain the most exposure. When the listing

agent enters the property into the MLS they also commit to pay a

commission to the agent who brings a ready, willing and able buyer

to the negotiating table and completed the purchase transaction.

In simple terms, the seller pays the commission.

So, it costs the buyer nothing to have professional representation!

Sales commissions are usually split in half, 50% to the listing

broker and 50% to the selling broker (the broker representing

the buyer).

Some buyers assume that if they find a property and agree to let

the listing agent represent them in the purchase that they are going

to save money. NOT SO! When a listing agent represents a buyer

that broker gets 100% of the sales commission. The process is

legal and happened every day.

If you are about to make the largest purchase of your life, would you

feel more comfortable being represented by an agent who already

has a contractual obligation to represent the seller? Or would you

feel more confident being represented by an agent who is dedicated

to representing you with 100% of their skill and knowledge?

I know which choice I would make. Let's see now, 100% effort

for ZERO out of pocket...

Stay tuned for the next Blog in this series.