[recordsclerk]

In my little experience trying to buy a REO, I’ve found that there are a lot of restrictions on buying REOs. You would have to do a pre-inspection prior to making an offer, so if you are planing on making a low-ball offer you would probably be wasting money on the inspection. On some of the properties there won’t be any electricity for you to check the appliances and lighting. This would include the gas stoves/ovens. Most of the properties have running water so you can at least run the faucets, flush toilets, check draining. You also have to pre-qual with their preferred lender and even in some cases get a loan commitment letter from a lender. This is something that bothers me because you will need to have your credit pulled each time you make an offer. Properties that are well priced usually have multiple offers. So it’s not that easy just to go out and make a bunch of low ball offers on a bunch of properties. The way I see it you have to wait and find a property you really like and are willing to pay full asking price or more if there are multiple offers. Then you would do a pre-inspection and pre-qual in order to submit an offer.
As far as loans go, most lenders would prefer 20% down regardless of what type of home you buy (REO, Short, Regular)as long as the appraisal falls in line with the asking price. I have made several offers and have yet to buy a home. My offers have either been too low and rejected or when I’ve made full price offers, I’ve been on the losing end of a bidding war. Another stragety that I use is look at homes that are little more then what I’m willing to pay and wait for price reductions until I’m satisfied with the asking price and immediately make an offer at/near asking price.
I believe that prices are still coming down, but there are some deals out there in distressed neighborhoods. If you are planing to buy in a more desired area or areas that have held up pretty good, I would wait at least till the end of this year if not longer. I’ve been shopping in Chula Vista for the last 5 months and 90% of the REO homes that I looked at have gone pending and a lot of them have failed to close escrow and ended up being re-listed. I’m in the market for 3000+sqft under 800K.

[recordsclerk]

In my little experience trying to buy a REO, I’ve found that there are a lot of restrictions on buying REOs. You would have to do a pre-inspection prior to making an offer, so if you are planing on making a low-ball offer you would probably be wasting money on the inspection. On some of the properties there won’t be any electricity for you to check the appliances and lighting. This would include the gas stoves/ovens. Most of the properties have running water so you can at least run the faucets, flush toilets, check draining. You also have to pre-qual with their preferred lender and even in some cases get a loan commitment letter from a lender. This is something that bothers me because you will need to have your credit pulled each time you make an offer. Properties that are well priced usually have multiple offers. So it’s not that easy just to go out and make a bunch of low ball offers on a bunch of properties. The way I see it you have to wait and find a property you really like and are willing to pay full asking price or more if there are multiple offers. Then you would do a pre-inspection and pre-qual in order to submit an offer.
As far as loans go, most lenders would prefer 20% down regardless of what type of home you buy (REO, Short, Regular)as long as the appraisal falls in line with the asking price. I have made several offers and have yet to buy a home. My offers have either been too low and rejected or when I’ve made full price offers, I’ve been on the losing end of a bidding war. Another stragety that I use is look at homes that are little more then what I’m willing to pay and wait for price reductions until I’m satisfied with the asking price and immediately make an offer at/near asking price.
I believe that prices are still coming down, but there are some deals out there in distressed neighborhoods. If you are planing to buy in a more desired area or areas that have held up pretty good, I would wait at least till the end of this year if not longer. I’ve been shopping in Chula Vista for the last 5 months and 90% of the REO homes that I looked at have gone pending and a lot of them have failed to close escrow and ended up being re-listed. I’m in the market for 3000+sqft under 800K.

[recordsclerk]

I’ve been a short sale that the buyer has stated that they are in the process of moving to their new home that they just purchased. I also spoke to a small store owner that is going to to the same thing. This is going to be big, people will walk away from being under water even if they can afford their payments. It’s not just going to be people that can’t afford payments after their teaser rate changes. Once this becomes more common place the majority of people underwater might do the same thing.

[recordsclerk]

I’ve been a short sale that the buyer has stated that they are in the process of moving to their new home that they just purchased. I also spoke to a small store owner that is going to to the same thing. This is going to be big, people will walk away from being under water even if they can afford their payments. It’s not just going to be people that can’t afford payments after their teaser rate changes. Once this becomes more common place the majority of people underwater might do the same thing.

[recordsclerk]

I’ve been a short sale that the buyer has stated that they are in the process of moving to their new home that they just purchased. I also spoke to a small store owner that is going to to the same thing. This is going to be big, people will walk away from being under water even if they can afford their payments. It’s not just going to be people that can’t afford payments after their teaser rate changes. Once this becomes more common place the majority of people underwater might do the same thing.

[recordsclerk]

I’ve been a short sale that the buyer has stated that they are in the process of moving to their new home that they just purchased. I also spoke to a small store owner that is going to to the same thing. This is going to be big, people will walk away from being under water even if they can afford their payments. It’s not just going to be people that can’t afford payments after their teaser rate changes. Once this becomes more common place the majority of people underwater might do the same thing.

[recordsclerk]

I’ve been a short sale that the buyer has stated that they are in the process of moving to their new home that they just purchased. I also spoke to a small store owner that is going to to the same thing. This is going to be big, people will walk away from being under water even if they can afford their payments. It’s not just going to be people that can’t afford payments after their teaser rate changes. Once this becomes more common place the majority of people underwater might do the same thing.

[recordsclerk]

This is the first home over 3000sqft to list for under 500K. The list price is 499-550K.
The address is:
2410 Wishing Star Way, Chula Vista, 91915
MLS: 088006395
3817sqft
$131 a sqft. in Chula Vista.
This is probably a short sale and will not sell for this price, but it is the first to be listed for under 500K.

http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=088006395&page=1&property_type=SFR&mls=mls_sandiego&cKey=lmmxmcz6&source=SANDICOR

[recordsclerk]

This is the first home over 3000sqft to list for under 500K. The list price is 499-550K.
The address is:
2410 Wishing Star Way, Chula Vista, 91915
MLS: 088006395
3817sqft
$131 a sqft. in Chula Vista.
This is probably a short sale and will not sell for this price, but it is the first to be listed for under 500K.

http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=088006395&page=1&property_type=SFR&mls=mls_sandiego&cKey=lmmxmcz6&source=SANDICOR

[recordsclerk]

This is the first home over 3000sqft to list for under 500K. The list price is 499-550K.
The address is:
2410 Wishing Star Way, Chula Vista, 91915
MLS: 088006395
3817sqft
$131 a sqft. in Chula Vista.
This is probably a short sale and will not sell for this price, but it is the first to be listed for under 500K.

http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=088006395&page=1&property_type=SFR&mls=mls_sandiego&cKey=lmmxmcz6&source=SANDICOR

[recordsclerk]

This is the first home over 3000sqft to list for under 500K. The list price is 499-550K.
The address is:
2410 Wishing Star Way, Chula Vista, 91915
MLS: 088006395
3817sqft
$131 a sqft. in Chula Vista.
This is probably a short sale and will not sell for this price, but it is the first to be listed for under 500K.

http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=088006395&page=1&property_type=SFR&mls=mls_sandiego&cKey=lmmxmcz6&source=SANDICOR

[recordsclerk]

This is the first home over 3000sqft to list for under 500K. The list price is 499-550K.
The address is:
2410 Wishing Star Way, Chula Vista, 91915
MLS: 088006395
3817sqft
$131 a sqft. in Chula Vista.
This is probably a short sale and will not sell for this price, but it is the first to be listed for under 500K.

http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=088006395&page=1&property_type=SFR&mls=mls_sandiego&cKey=lmmxmcz6&source=SANDICOR

[recordsclerk]

Yes that is the house we drove by. This house has a lot of hardscape and may not dip into the 900s, but similar homes that are distress sales will dip into the 900s. This house is a plan 3 and I believe Quintessa is still building so you could probably go to the sales office if you want to look at the model. Most of these homes were built in 2006/2007 and may take more time before they go into forclosure/distress. There was one same model (plan 4) with casita that went pending. It was a short sale that was listed at 925k-1.2mil. Since it’s a short sale it may take some time to find out the final sale price if/when it happens. All the homes in Quintessa have upgraded kitchens and some flooring/bathrooms upgrades, so essentially they should have the same amount/value of upgrades inside. Quintessa is also on my radar, but I could only afford 800K, so for now it’s not a possibility.

[recordsclerk]

Yes that is the house we drove by. This house has a lot of hardscape and may not dip into the 900s, but similar homes that are distress sales will dip into the 900s. This house is a plan 3 and I believe Quintessa is still building so you could probably go to the sales office if you want to look at the model. Most of these homes were built in 2006/2007 and may take more time before they go into forclosure/distress. There was one same model (plan 4) with casita that went pending. It was a short sale that was listed at 925k-1.2mil. Since it’s a short sale it may take some time to find out the final sale price if/when it happens. All the homes in Quintessa have upgraded kitchens and some flooring/bathrooms upgrades, so essentially they should have the same amount/value of upgrades inside. Quintessa is also on my radar, but I could only afford 800K, so for now it’s not a possibility.

[recordsclerk]

Yes that is the house we drove by. This house has a lot of hardscape and may not dip into the 900s, but similar homes that are distress sales will dip into the 900s. This house is a plan 3 and I believe Quintessa is still building so you could probably go to the sales office if you want to look at the model. Most of these homes were built in 2006/2007 and may take more time before they go into forclosure/distress. There was one same model (plan 4) with casita that went pending. It was a short sale that was listed at 925k-1.2mil. Since it’s a short sale it may take some time to find out the final sale price if/when it happens. All the homes in Quintessa have upgraded kitchens and some flooring/bathrooms upgrades, so essentially they should have the same amount/value of upgrades inside. Quintessa is also on my radar, but I could only afford 800K, so for now it’s not a possibility.

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