Living In Santa Clarita

Tidbits on Santa Clarita

Archive for the category “REO”

Housing Market is on fire!

The housing market has been on fire for the last 9 months actually! We have seen houses sold in hours for asking or above asking price. Sometimes for 50K over with all contingencies removed. Why would you do that you ask? Because the prices are going up and you will get equity or appreciation in your new home in months not years right now.

Most areas around the Los Angeles area are going up at least 1-2 % per month.

If you hare interested in buying in an area, contact me today and I will send you the information on how that area is doing right now.

Housing Market is on fire!  – click on the article to the left here and read more…

Michael

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LA Times article

LA Times article

Here is an article from the LA Times that explains the market and why it is heating up.

Since March I have been tracking single family homes in all the areas of Santa Clarita. Every area has gone way down in the amount of listings. My tracking confirms what this article is saying.

Please read the article…

http://www.latimes.com/business/la-fi-inventory-20120610,0,1637144.story

How much should I bid on an REO home?

In today’s market when I show homes to buyers more than 50% of the time there are short sales or REO’s (bank owned homes). The question that arises about 99 % of the time is “How much should I bid on an REO home?

There are a few variables to consider before I actually answer that question.

  • The first response I give and so should any agent in the business is “let’s check the comparables (comps) for that area.  This way we can see what others of like value have sold for. Key word here is “sold” for. Your bank is only going to lend you the money to buy a home based on the value or going rate at the time.
  • Besides the  average price of the “solds” another very important factor to look at is the average of what the house sold for vs what the list price was at. That way we can see how hot that pocket of homes is selling for right now vs another area 5 miles away in another part of Santa Clarita that might not be as hot. To me this is very important. If homes are selling for 95% of list price to sold price then we shouldn’t go in at 80% and not even get a counter offer. We stand a better chance at 92% .
  • Length of time on the market – a rule of thumb is, the longer it sits on the market the more flexibility there should be in the price. On the flip side,  a brand new listing should have less flexibility.
  • On a regular or standard sale you can go in with a punch list and a letter of why you are offering the lower price in hopes the seller will understand and be flexible with the price. With a bank owned sale the bank doesn’t care about that. Most banks if not all will give you very little or nothing in the way of concessions. They are looking solely on the comps.
With those few variables I can give an answer and then the buyer will decide what they want to do. If they really want the house, I mean they “want” this house vs just throwing out an offer and seeing what happens, then they will make an offer close to asking price.

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