Banks as Victims? Bait and Switch: R.E.O. – O.B.O.
If it sounds too good to be true, it’s not true! Suddenly, many of the properties listed for sale around town are reduced not $50,000, not $100,000, not even $200,000 off but actually $300,000 or more! Bull-oney!
Some real estate agents have decided to tempt people by pretending that REO (Real Estate Owned) bank foreclosures are available for purchase at unbelievably low prices. The worst part is that other agents fall for it. Have you seen it yet? A great house is listed at $499,000 in a fantastic location. You rush over to check if the roof is caved in or maybe the doors were packed up in a U-Haul by the evicted owners.
Lo and behold, it is a great house. You call your agent to make an offer immediately but then you learn that “they are not taking any offers.“ There are ten offers already and they are all above the asking price. Well, let’s offer more! Okay. Not Okay. The home has an accepted offer above $700,000! It happened in my neighborhood. The original price was actually the opening price for an online auction. Was that house offered for sale at a price anywhere near the market value? The bank never knows how much it could have sold for.
People tell each other you can get a great house for $499,000. Agents tell each other that everything is in multiple offers. Yeah, and your Ginsu knives are yours for free (send $300,000 shipping and handling). Tactics like this only add to the trouble we have selling our homes.
How can it be true that most homes are available at unbelievably huge discounts if they are not actually available at that price when we show up to buy one? Call a Certified Distressed Property Expert (CDPE) for an explanation, or just to complain, at (626) 625-7123.