How to monitor foreclosure prices???

[murf2222]

I know that we are in the early innings of the foreclosure debacle, but I’m starting to get curious about REO prices/sales.

I’m guessing that REO properties are starting to pile up on the lenders. It would be nice to track the listing and sales prices of these properties so I can see what the real world discounts are at for the areas I want to buy in.

*Median* price drops are great headlines to read, but aren’t specific enough.

So what’s the word on the street about prices for REO’s? As recently as a couple months ago the banks were acting awfully proud of their REO inventory and pricing it as such. Is there evidence that this has changed?

[guitar187]

One variable to look at would be the bulk REO packages that are going around for sale. This would give you an idea of what banks are losing up front. Many of these guys just don’t have the back end support to liquidate the asset so they move it in bulk. Another variable would be the loss mitigation guidelines for individual lenders (countrywide, etc.). This would give you an idea of where and what they are willing to give up as a loss.

Of course, these are only two variables of many. But it would be a good starting point that you could use to adjust *median* prices by. If you are more specific about they area/price range you are looking at I’ll see what I can do about providing some data. I realize some of the information above may be difficult to get.

[SD Realtor]

Guitar those are good comments. I am not sure how readily available bulk purchases are and on the other hand, bulk purchases are generally made by investors who then want to flip the properties. For Joe homebuyer just looking to purchase a home and get a smokin deal obtaining more obscure data such as how much an REO went for at auction is manual… Pretty much digging through the tax roll…Grinder….

One thing that is absolutely happening is that yes REO pricing does seem to be adjusting to reality a bit more. Again most REO properties do indeed hit the MLS. At any rate as more and more properties that sell do so as a result of a distress sale, the LESS you will have to adjust the median. Indeed, I do think the markedly lower median of November was due to the result of a much larger distress component.

My point is that perhaps you will not need to adjust the median numbers at all, you can simply use it because it may be composed of a heavy dose of distress sales.

It all depends on the neighborhood you are looking at. (I suppose)

SD Realtor

[SD Realtor]

Guitar those are good comments. I am not sure how readily available bulk purchases are and on the other hand, bulk purchases are generally made by investors who then want to flip the properties. For Joe homebuyer just looking to purchase a home and get a smokin deal obtaining more obscure data such as how much an REO went for at auction is manual… Pretty much digging through the tax roll…Grinder….

One thing that is absolutely happening is that yes REO pricing does seem to be adjusting to reality a bit more. Again most REO properties do indeed hit the MLS. At any rate as more and more properties that sell do so as a result of a distress sale, the LESS you will have to adjust the median. Indeed, I do think the markedly lower median of November was due to the result of a much larger distress component.

My point is that perhaps you will not need to adjust the median numbers at all, you can simply use it because it may be composed of a heavy dose of distress sales.

It all depends on the neighborhood you are looking at. (I suppose)

SD Realtor

[SD Realtor]

Guitar those are good comments. I am not sure how readily available bulk purchases are and on the other hand, bulk purchases are generally made by investors who then want to flip the properties. For Joe homebuyer just looking to purchase a home and get a smokin deal obtaining more obscure data such as how much an REO went for at auction is manual… Pretty much digging through the tax roll…Grinder….

One thing that is absolutely happening is that yes REO pricing does seem to be adjusting to reality a bit more. Again most REO properties do indeed hit the MLS. At any rate as more and more properties that sell do so as a result of a distress sale, the LESS you will have to adjust the median. Indeed, I do think the markedly lower median of November was due to the result of a much larger distress component.

My point is that perhaps you will not need to adjust the median numbers at all, you can simply use it because it may be composed of a heavy dose of distress sales.

It all depends on the neighborhood you are looking at. (I suppose)

SD Realtor

[SD Realtor]

Guitar those are good comments. I am not sure how readily available bulk purchases are and on the other hand, bulk purchases are generally made by investors who then want to flip the properties. For Joe homebuyer just looking to purchase a home and get a smokin deal obtaining more obscure data such as how much an REO went for at auction is manual… Pretty much digging through the tax roll…Grinder….

One thing that is absolutely happening is that yes REO pricing does seem to be adjusting to reality a bit more. Again most REO properties do indeed hit the MLS. At any rate as more and more properties that sell do so as a result of a distress sale, the LESS you will have to adjust the median. Indeed, I do think the markedly lower median of November was due to the result of a much larger distress component.

My point is that perhaps you will not need to adjust the median numbers at all, you can simply use it because it may be composed of a heavy dose of distress sales.

It all depends on the neighborhood you are looking at. (I suppose)

SD Realtor

[SD Realtor]

Guitar those are good comments. I am not sure how readily available bulk purchases are and on the other hand, bulk purchases are generally made by investors who then want to flip the properties. For Joe homebuyer just looking to purchase a home and get a smokin deal obtaining more obscure data such as how much an REO went for at auction is manual… Pretty much digging through the tax roll…Grinder….

One thing that is absolutely happening is that yes REO pricing does seem to be adjusting to reality a bit more. Again most REO properties do indeed hit the MLS. At any rate as more and more properties that sell do so as a result of a distress sale, the LESS you will have to adjust the median. Indeed, I do think the markedly lower median of November was due to the result of a much larger distress component.

My point is that perhaps you will not need to adjust the median numbers at all, you can simply use it because it may be composed of a heavy dose of distress sales.

It all depends on the neighborhood you are looking at. (I suppose)

SD Realtor

[guitar187]

One variable to look at would be the bulk REO packages that are going around for sale. This would give you an idea of what banks are losing up front. Many of these guys just don’t have the back end support to liquidate the asset so they move it in bulk. Another variable would be the loss mitigation guidelines for individual lenders (countrywide, etc.). This would give you an idea of where and what they are willing to give up as a loss.

Of course, these are only two variables of many. But it would be a good starting point that you could use to adjust *median* prices by. If you are more specific about they area/price range you are looking at I’ll see what I can do about providing some data. I realize some of the information above may be difficult to get.

[guitar187]

One variable to look at would be the bulk REO packages that are going around for sale. This would give you an idea of what banks are losing up front. Many of these guys just don’t have the back end support to liquidate the asset so they move it in bulk. Another variable would be the loss mitigation guidelines for individual lenders (countrywide, etc.). This would give you an idea of where and what they are willing to give up as a loss.

Of course, these are only two variables of many. But it would be a good starting point that you could use to adjust *median* prices by. If you are more specific about they area/price range you are looking at I’ll see what I can do about providing some data. I realize some of the information above may be difficult to get.

[guitar187]

One variable to look at would be the bulk REO packages that are going around for sale. This would give you an idea of what banks are losing up front. Many of these guys just don’t have the back end support to liquidate the asset so they move it in bulk. Another variable would be the loss mitigation guidelines for individual lenders (countrywide, etc.). This would give you an idea of where and what they are willing to give up as a loss.

Of course, these are only two variables of many. But it would be a good starting point that you could use to adjust *median* prices by. If you are more specific about they area/price range you are looking at I’ll see what I can do about providing some data. I realize some of the information above may be difficult to get.

[guitar187]

One variable to look at would be the bulk REO packages that are going around for sale. This would give you an idea of what banks are losing up front. Many of these guys just don’t have the back end support to liquidate the asset so they move it in bulk. Another variable would be the loss mitigation guidelines for individual lenders (countrywide, etc.). This would give you an idea of where and what they are willing to give up as a loss.

Of course, these are only two variables of many. But it would be a good starting point that you could use to adjust *median* prices by. If you are more specific about they area/price range you are looking at I’ll see what I can do about providing some data. I realize some of the information above may be difficult to get.

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