Realtytrac.com and REO pricing

[gtzpower]

Hi everyone. I am a paying member at realtytrac.com, and today I went our and viewed a few houses in the REO section. One of them lists for $41,000 and the neighborhood + condition of this house would easily put it in the $150,000 range. So I have to ask, is the price listed for REO's on realty trac the price the bank is seeking to sell for?

Thanks.

EDIT: oh yea, and one more thing. Will banks usually help finance REO's?

[Homesurfer]

I don't visit RealtyTrac, but based on personal experience with the REO divisions of Mortgage Bankers (because I used to work there), the bank/lender is expecting to sell the home at or near market value.

We never sold a home at a price ridiculously undermarket like you see advertised on late-night television.

[Jnazareno]

Homesurfer is correct ...

When Dealing with REO, the banks expects near the fair market value. over the last 4 years the majority of the REO's have sold for more than the fair market value.

I expect the REO market next year to be red hot (should see at the end of the year)
hopefully Iam wrong - but as an investor I know it will be, so if we see 2 many REO's goes on the market, we might see some good discounts.

depending on what state that 41k seems like a second (if this is in high value states like Ca)

if you have little Capital why not go with Tax Lien investing
http://www.theforeclosuresinfo.com/tax-lien.html? Great income.

[highdesertagent]

no an eith zillow the bank wants the value market rage to sell if you were to list as an agent.. in a 90-120 day sale.. not what prices are at. or even if the house is maxed out the demand now is VALUE.. of the property.

[mo77us]

Spam Removed

[20something RE Guy]

Concerning Realtytrac......

I've had my REO properties posted on there in the past, one in particular was very aggrivating.

They posted the sales price as $81,500, this price was TOTALLY incorrect. The list price/asking price was $130,000. The house was worth about $135,000. Through research I found out that RealtyTrac posts the FORECLOSURE AUCTION proceeds on the website, that means, when a county does the appraisal of 2/3rd market value, and no one shows up that day, it will be that number.

Totally off , i had 2-3 calls on this property from RealtyTrac people asking if they could buy it for $81,500. I asked all of them why the bank would sell a $130,000 property for $81,500.....Banks aren't stupid!

[kelsheikh]

Yea, realtytrac's information is all over the place. They have listings for properties that are outdated or most of their data has incorrect information.

[Jnazareno]

I asked all of them why the bank would sell a $130,000 property for $81,500.....Banks aren't stupid!

In many cases they actually would sell a home for more than 50% off..
not very common but with today's market they are willing to negotiate prices way down (yes even in good areas and good condition homes) just to get some money back, better off than waiting, waiting and
and no activity. REO cost people, banks, lenders etc way too much time and money.

[20something RE Guy]

Maybe you're right, but I deal with MANY REOs in my area, banks are seemingly being more realistic than they were a year ago with pricing, but i can't say i've ever seen a property to sell for 50% of it's fair market value.

[florida property for sale]

i don't think banks will helps in finance REO's..