[quote=SD Realtor]FSD I guess I do not understand your reluctance. I don’t see any difference in buying an REO from an investor then buying an REO off the MLS. In fact at least buying an REO is somewhat safer then buying at a trustee sale right? The legal issues of wiping on the lienholders is already done, tenants are removed, etc…
I think we would see a much more robust market IF resellers were actually competing with REOs more effectively. I absolutely agree with you that gaining concessions from resellers is a great thing to pursue. No doubt! However at this point in the decline I say very very rare instances of resellers competing with REO properties on pricing. As you said, those who have patience and can wait out the later stages of the cycle will see a much closer pricing between resellers and REO sales. IMO we have a ways to go.
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SDR –
I didn’t intend to convey that buying a REO from an investor is less safe than buying via MLS. Also, I agree that buying a REO from an investor or off the MLS is safer than at trustee sale.
I was simply saying that I’d rather not buy a REO at all. You are right that there are not many individuals truly competing with REO’s currently. However, later in the cycle I believe that this will happen.
If you take my approach you win in two ways : 1) you are more likely to buy at the right part of the RE cycle; 2) You get homes that have already been cleaned up and prepared for move in at little premium to REOs. Just my opinion.
This is what was happening in the 95-96 time frame and is likely again in 2010. Just my opinion.
But if you are determined to buy a REO now, I guess my option is really off the table (for now).
