Foreclosures making it to Market Vs REO hitting the market
March 11th, 2010
In February there were 309 properties in king County that made it to auction. There were a total of 342 REO properties that reverted back into bank ownership. There are 563,000 house holds in King County. So the total percent of homes in King County that are owned buy a Bank in February is 0.0006% of the house hold population. That is 6/10,000th of 1%. So as a lot of us are already experiencing, prepare your clients for multiple offer situations when going after REO’s, because they are scarce. Also know the banks have teams and teams of analysts crunching these numbers, so know there will be a lot less flexibility in negotiations. So, Keep it Real. Remember Banks don’t like Escalator clauses. They will always send out a multiple offer addendum whether you like it or not. And it will be on their time table not yours. And they will take the Highest and Best Offer on the date they select. That is the tough cookies.
