I am the Number 1 REO Bank Owned Foreclosure Buyer’s Agent in Naples, Florida. I concentrate on REOs because they present tremendous value. If you are not buying an REO, you may not be getting the best value. I often field calls about regular resales and short sales, and I have to continually explain the problems with them.
Regular Resale
If you are dead-set on buying a home based on very strict amenities or location, you may wish to pursue a regular resale. However, be prepared to deal with listing agents and sellers who are unwilling to budge from their unreasonable prices. You do not need to sacrifice location, condition or amenities when buying a foreclosure. It is almost guaranteed that something you like will come along that is aggressively priced by the bank so buyers like you see their listing first. I can show you many examples where my clients really liked a home, and I was able to take them to a nearby REO bank owned foreclosure, a perfect comp, just listed for thousands less. More times than not, they enter pleasantly surprised at the move-in condition of the home.
Short Sales
Short sales have about a 1 in 7 chance of actually going through. Consequently, while you have an offer in on a short sale, you will be waiting to hear from the seller’s agent, who you have zero confidence in knowing they are pushing your offer with the bank, and all the while, aggressively priced REOs will come across our desk, and you won’t pay any attention because you have your time, money and attention tied up in a short sale that has a 15% chance of going through. Regular private-party resales and short sales are not happening at the accelerated rate of REO sales. If you don’t believe me, simply look at the numbers.
REO Bank Owned Foreclosures
In August 2009, there were 512 sales in Naples. Almost 1/3rd or 32% were Real Estate Owned (REO) foreclosures. Yet, bank owned foreclosures represent less than 4% of the entire market. Question: How does 97% of the market’s inventory represent only 54% of sales? Or, to pose the question in another way, how does less than 4% of the market inventory represent almost a third of all sales? Answer: Price. The factor is certainly not condition, location or amenities. If typical private resales are cleaned, painted, and often furnished for sale, why are they getting beat out by unfurnished, often unclean foreclosures? Price. I am not saying that bank owned foreclosures are uninhabitable; in fact, many are move-in ready. The difference is listing agents who perform Brokers Price Opinions (BPOs) for the banks will aggressively price foreclosures to move quickly, whereas a listing agent on a private party sale must work hard to convince reluctant homeowners to lower their prices to compete with the banks. The average homeowner isn’t willing to budge on their price, and consequently, the banks move their inventory quickly, and the Average Joe seller is stuck with a For Sale sign in his front yard for a long time. This is why smart buyers, 33% of you, have your eyes on that small (and shrinking) 3% of the market. If you would like to discuss this further, contact me at info@naplesguru.com or call the office at (239) 963-4070. You can view bank owned foreclosures on a Google map at http://www.bankownednaples.com , or if you want to browse all of Naples real estate, including luxury listings and waterfront Gulf Access property, go to http://www.naplesguru.com ,or, if you wish to learn about the communities in Naples, go to the best community based site which includes in-depth community write-ups, community videos (only found here) and more at http://www.enaplesrealestate.com.
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