Thursday, April 30, 2009

Man these REO's are going fast.

It seems to me that the East Side market is heating up in proportion with the weather. I've written 8 offers in the last 10 days for 8 different buyers on 8 different properties and not one of them has yet been countered or denied or even responded to. WTF are you loss mitigator/asset manager types doing all day long??.

Some of these banks are getting the hint that to sell a property quickly you need to underprice it and let it get bid up. When writing offers over asking price as is necessary on nearly all of these underpriced REO's, the question becomes how high to go. No one wants to drop more than necessary even for a great value. The way it seems to be occuring is that the bank will take a certain number of offers and let them all put in a highest and best offer in a silent auction for the property. This is a fiendishly clever strategy because no one knows where the bid is at, buyers can be made to bid against themselves blindly. A rich man once told me that auctions are a great way to sell something, not so good for buying something. Food for thought.

The price of real estate
in most areas (sorry, Silverlake) is about what it was in 2001. I'll see all you bargain hunters out there...

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