Over the next two months homebuyers are going to have the best chance to find a decent deal. The less-motivated buyers will be on the holiday sidelines, and any sellers still on the market have to be getting desperate.
Once we get into 2010, the tax-credit frenzy will likely kick up more interest from buyers, and make it tougher to get a clean shot at a real deal.
Buyers are clamouring for the bank deals, so don’t expect to score an REO without competition. In fact, if you offer on a bank deal, and there aren’t multiple offers, you gotta ask yourself why.
For example, dafox can start thinking about where he’ll be sporting his new t-shirt, because we opened escrow today on Buena Vista. It took four days to rustle up three offers, and after countering for highest-and-best, all we could do was $603,000 on our $601,800 list price. But at least I won’t have to worry about losing my job for selling them too high!
True, it was a funky house in a not-so-family-friendly area, so it’s not a great example of REO sales in 4Q09. Those in the more popular areas are still cooking.
The 55 REOs that have gone pending in Coastal North County since October 1st have averaged 19 days on the market. Counting the time it takes to get a signature from the bank, you can figure that most had offers in the first couple of days.
Look elsewhere for the real deals, and if you don’t cringe when making the offer, it’s not low enough:
1. Sellers with a high loan balance, but still have 30% or more in equity.
2. Any new listings coming on the market over the next 45 days.
3. Listings that have been on the market for 200+ days.
4. Listings that are hard to show.
5. Short sales that have been lingering.
6. Agents who have lots of listings.
Here’s an example: