REOs Prevail in Rancho Santa Margarita
REO properties dominate the Real Estate market in the Orange County city of Rancho Santa Margarita. Since the beginning of 2009, REO homes sales account for 41% of the homes sold in Rancho. Short sales account for 26% of the homes for sale in RSM that sold in the same time period. Regular, traditional or what we call “non-distressed” sellers make up 33% of the successfully completed residential Real Estate transactions in this desirable South Orange County community.
The main reason why REO homes on the market in Rancho Santa Margarita sell faster and closer to the list price is because of the business like aspect of an REO listing. With a huge increase in the number of foreclosures in today’s rough economy, the banks have designed a systematic approach to listing and selling these “assets.” Their business practice is putting pressure on traditional sellers is the bottom line. Click here for insider scoop on how the REO process works from the bank’s perspective. There is a huge difference between the pricing decision of the bank and a traditional seller. And it has huge consequences on how the market reacts.
REO Reality in Rancho Santa Margarita
To show you how this difference plays out in today’s Rancho Santa Margarita Real Estate market – let’s look at two recent sales. First, there’s the story of a traditional seller, not a short sale or an REO, and their home that recently sold in Rancho Santa Margarita. This 2100 square foot 4 bedroom 3 bath with a 3 car garage and a large grassy yard was originally listed at $639,000.00 in July of 2007. Then they dropped the price to $599,000 at the end of August. Still no sale, so they dropped the price again to $559,000 in mid-November – a Thanksgiving special! Still no sale, so they finally dropped the price to $524,900.00 and accepted an offer at $525,000.00 two weeks later. So after 164 days on the market, they got their home sold for 82% of the original list price.
Compare that to this a bank owned a 1700 square foot 4 bedroom 3 bath home with a 2 car garage and a smaller grassy yard. Listed on New Year’s day at $389,000.00. Received at least multiple offers (I know this because my clients were one of those) accepted an all cash offer of $400,000 and opened escrow on January 6 and closed 6 days later on January 12.
It is a great time to be a home buyer in Rancho Santa Margarita, CA these days. Huge savings are waiting for you - just make sure you know what you are getting in to when you agree to buy an REO home for sale in Rancho Santa Margarita. And once you decide to go for it – do a thorough home inspection with a reputable company, do a mold inspection, ask for a CLUE report when you apply for Home Owners Insurance and do this as soon as possible. Then you can be confident in your decision to buy an REO home for sale in Rancho Santa Margarita.
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