Who is buying the bulk of the REO (Bank Owned) properties in your neighborhood? It's very frustrating for the 1st Time home buyers when the bulk of the homes they can qualify for are going to the 'all cash' buyers...which are typically investors. I know from experience and numerous offers that the banks don't care about selling their properties for the highest possible, fair market value. They opt for the less-risk offer which is all cash. I get it...I know they want the properties off their books...but it doesn't mean I have to like it! I just wish one of the bank's incentives were based on revenue rather than just number of units sold. I say that based on my experience and opinion.
One of the areas with the bulk of the REO homes for sale is located in Antioch, CA. The following chart shows the sales from Aug. 1 through Sept. 20, 2009. It covers detached, single family homes only. There were 232 homes that closed escrow during that time period. The "Cash" offers represent 28% of all sales and 75% of the REO (Bank Owned) sales.
|
How Sold |
Total % of All Sold
|
Avg. Selling Price |
Days on Market |
Sold $/Sq. Ft. |
% REO |
% Short Sale |
% Regular
|
|
Cash |
28% |
$181,469 |
22 |
$101 |
75% |
8% |
17%
|
|
Conventional |
43% |
$224,014 |
29 |
$111 |
63% |
9% |
28%
|
|
FHA |
26% |
$233,758 |
43 |
$106 |
60% |
23% |
17%
|
|
Other |
2% |
$164,000 |
16 |
$99 |
80% |
0% |
20%
|
|
VA |
1% |
$283,333 |
59 |
$127 |
0% |
33% |
67%
|
So, who is buying the bulk of the REO's in your neighborhood...cash investors or 1st Time home buyers? (To me, I don't put 1st Time home buyers in the 'all cash' category!)
(The above figures were taken from the Contra Costa Assoc. of Realtor's MLS effective Sept. 21, 2009)
If moving to Walnut Creek or the East Bay of California, give me a call, search the MLS or view My Website for more information.
Connect with me...
I live, work and play in Walnut Creek, CA! For Real Estate and community information about this beautiful city as well as the surrounding areas, please visit my website at www.TerriAdamsScott.com
