I was asked today about whether REOs (Real Estate Owned) or Bank Repos are still a good deal in Sacramento? The best explanation for this is to begin by explaining the history of the real estate market for the past few years. Take a look this graph:
As you can see, Sacramento bank owned listings continued to climb in numbers through 2010 and then have continued to fall through the present. In 2010 the distressed inventory represented over 70% of our total market, while today Sacramento bank owned listings represent only 5% and Sacramento short sales represent approximately another 10%. Today, there are 143 bank owned listings on the market in Sacramento with the median price being $239,900 and the average days on the market being 61 days.
It seems to be a common misconception that bank owned homes are always a great deal. With the viewpoint of buyers that distressed properties are going to be a great deal, buyers will often overbid or overlook the resale home down the street that is priced just as well. It is so important that as a professional real estate agent, we run comparable home sales to make certain of the value for our buyers. Additionally, banks sell their inventory “As Is” and will make very few repairs, if any, while an equity seller will often times have more flexibility in repairing found with the home they are selling.
While the distressed housing inventory continues to head downward, equity sales have recently seen an increase. It is great to see more options for Sacramento home buyers to choose from. Although the distressed listings in Sacramento may not be the deals they used to be, there is more competition right now than there has been in the past few months, making this a great time for Sacramento home buyers!
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