THE NEW REO BIDDING WARS
As I noted in my new “REO Listings Trends” article, REO homes have transitioned from being a glut on the market to becoming hot properties.
Yes, believe it or not, we’re back into an overheated housing market – this one dominated by REO listings! The combination of prices dropping by anywhere from 30 to 60% in recent months and the beginnings of a Wall Street recovery has brought about an incredible situation where foreclosures are suddenly the object of bidding wars.
The Associated Press reported a couple of weeks ago on one couple, trying to buy their first home at a bargain price in Phoenix, one of the country’s REO hotspots. This husband and wife were outbid a total of 15 times on different REO properties. In their desperation to snap up one of the tremendous REO bargains now available, they’re now making up to three offers a day on homes they haven’t even seen yet!
Experts are saying it’s a lot like what they saw at the height of the real estate bubble a few years ago – only it’s happening strictly with REO’s. Investors are stocking up on REO homes – often paying cash and buying several homes at once as an investment. Obviously, REO sellers like that, especially the cash part, since credit is still tight for traditional mortgage applicants.
What does this all mean to REO agents and brokers? Well, prices are already beginning to rise thanks to the increased demand for these properties – so it should mean more activity and more profit. And this is the time to take advantage of these fantastic conditions in the REO marketplace.
If you’re already a member of our organization, ASREOS (the American Society of REO Specialists), make sure your online profile is up to date with your latest information so, when REO sellers check you out, you’re making the best possible impression. Also browse the Members-Only Forum for the latest news and tips from REO pros all across the country.
If you’re not already an ASREOS member, please consider it – we can give you the tools to help maximize lucrative REO sales. At ASREOS, we’re committed to helping our membership gain the competitive edge needed to succeed. So, whether you’re a newcomer to the REO business or a seasoned veteran, I suggest you visit us at www.ASREOS.com for more about our organization and what we can do for you.
REO inventory and sales are predicted to stay strong for at least the next two years – so the boom has really just begun!
