So what’s up with Bank Owned homes for sale in Orange County, California? Why are they the fastest moving homes for sale in the Orange County Real Estate market today?
Bank Owned Homes in Orange County are Moving
They are priced right, for one thing. The banks who control the release of the foreclosed homes in to the local markets like Rancho Santa Margarita Real Estate hold the listing agents to very business-like standards. There is absolutely no emotion involved. The agents are expected to be thorough, diligent, and realistic when they submit their Broker Price Opinion (commonly referred to as a BPO) to the REO Asset Manager who approves the list price for the home, and also reviews and decides on the offers submitted. This is a much different scenario than a listing agent sitting with a traditional seller at the kitchen table, surrounded by their family, their memories, and their hopes and dreams for the future, reviewing comparable sales in their neighborhood and trying to agree on a price that feels like the right thing to do. The struggle between “what my home was worth 3 years ago” and what it will sell for in today’s market it a hard pill to swallow for most sellers. With the REO listings, it is all business. When the bank releases an asset into the retail market, they want it sold quickly. They want to get the most money in the least amount of time. The asset managers are actually compensated for how quickly they sell their inventory. And the listing agents are held accountable to the BPO – the banks actually keep a score sheet on each agent and the most critical factor in the agent’s score is the final sales price compared to the BPO. Agents who miss the mark on price too frequently will stop receiving assets. Meaning they will go out of business. Traditional sellers tendto focus on the list price of their home, and often underestimate the danger of over-pricing their home.
The Downside With Foreclosures
However, the advantage that traditional home sellers have over REOs homes on the market for sale is that there are potential pitfalls with REOs. There is no seller in the picture who can give you the history on the home – what’s gone wrong, what’s leaked, what’s broken, what’s been repaired. Many REOs now have been vacant for months and only God knows what’s happened in that time. I’ve seen (and smelled) mold in many REOs and have had two buyers back out on foreclosed properties after completing a home and mold inspection due to the detection of mold in multiple sites.
So whether you are buying a home in Orange County today, or selling your Orange County home, it is imperative that you realize the impact REOs are having on today’s real estate market.
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