Aviano Homes for Sale - REO Sales Suck
The upside to a bank/lender owned or "REO" listing is that you usually get a response fairly quickly. That is about it. Some recent events and a recent continuing education class have highlighted the BS that goes on with these. Not to mention the trend of reduced commissions. Issues are:
*REO contracts or addendums favor the seller. Once your offer on the Arizona Residential Purchase Contract is accepted then you have to sign the banks "addendum". Many pages long, it effectively supersedes the purchase contract and may throw serious curveballs at buyer. *Lenders will take multiple offers and play them off on each other to get highest number.
Teaser initial listing prices drive up demand then all are shaken down for highest and best.
*Buyer will get a darn near worthless title commitment.
*Watch for modifications to the inspection period.
*Spot treatment offered if termites are found versus a full treatment.
*Banks will rarely turn on utilities in order to do the inspection. He who turns on utilities assumes major liability.
The list goes on.
The listing agents of REO properties are given many homes to sell by the lenders in return for a lessor cost to sell in many cases. Lack of local market knowledge and service levels are the outcome. Think you get treated like crap at the DMV office? Try being the buyers agent on a lender owned property.
The other issue is the total lack of rational thought or action by the "asset manager" working for whoever the owner is. We helped some folks buy a home with 31 offers on it. Their offer was $40K below the highest offer it turns out. And to add insult to injury, all the buyers were asked to submit their "highest and best" AFTER the computer program had flagged our buyers contract to accept. The wizard behind the curtain in the land of oz acted in a more rational way.
Another buyer we know submitted an offer of all cash well over asking price. That offer was rejected as it was not the highest offer. The highest offer was using a loan and when the appraisal came back low the bank lowered the price to the appraised value and sold it to the buyer using the loan for $15K less than the full cash offer the asset manager turned down.
The rule of thumb is that there are no rules. Every transaction is different and those that have trouble going with the flow of stupidity or who demand logical process are out of luck. Caveat Emptor - Let the buyer beware.
The normal sale Tercera model at 22909 N. 38th Way is temporarily off market.
There is a new short sale listing for a Melilla model at 23121 North 39th Place. Priced at $460K, it is one of 5 of these models in Aviano. 3728 sq ft, 3/3/pool/3 car garage. Call me if you would like to see it.
Tags:aviano,desert ridge,phoenix,real estate,villages at aviano,fireside,Arizona,short sale,foreclosure,fireside at desert ridge,Toll Brothers,pulte del web,bella monte. Information and pictures supplied by MLS and deemed reliable but not guaranteed. Proud to wake up, live and work in the great State of Arizona. Contact me at 480.330.0735 or doug0735@gmail.com
*REO contracts or addendums favor the seller. Once your offer on the Arizona Residential Purchase Contract is accepted then you have to sign the banks "addendum". Many pages long, it effectively supersedes the purchase contract and may throw serious curveballs at buyer. *Lenders will take multiple offers and play them off on each other to get highest number.
Teaser initial listing prices drive up demand then all are shaken down for highest and best.
*Buyer will get a darn near worthless title commitment.
*Watch for modifications to the inspection period.
*Spot treatment offered if termites are found versus a full treatment.
*Banks will rarely turn on utilities in order to do the inspection. He who turns on utilities assumes major liability.
The list goes on.
The listing agents of REO properties are given many homes to sell by the lenders in return for a lessor cost to sell in many cases. Lack of local market knowledge and service levels are the outcome. Think you get treated like crap at the DMV office? Try being the buyers agent on a lender owned property.
The other issue is the total lack of rational thought or action by the "asset manager" working for whoever the owner is. We helped some folks buy a home with 31 offers on it. Their offer was $40K below the highest offer it turns out. And to add insult to injury, all the buyers were asked to submit their "highest and best" AFTER the computer program had flagged our buyers contract to accept. The wizard behind the curtain in the land of oz acted in a more rational way.
Another buyer we know submitted an offer of all cash well over asking price. That offer was rejected as it was not the highest offer. The highest offer was using a loan and when the appraisal came back low the bank lowered the price to the appraised value and sold it to the buyer using the loan for $15K less than the full cash offer the asset manager turned down.
The rule of thumb is that there are no rules. Every transaction is different and those that have trouble going with the flow of stupidity or who demand logical process are out of luck. Caveat Emptor - Let the buyer beware.
The normal sale Tercera model at 22909 N. 38th Way is temporarily off market.
There is a new short sale listing for a Melilla model at 23121 North 39th Place. Priced at $460K, it is one of 5 of these models in Aviano. 3728 sq ft, 3/3/pool/3 car garage. Call me if you would like to see it.
Tags:aviano,desert ridge,phoenix,real estate,villages at aviano,fireside,Arizona,short sale,foreclosure,fireside at desert ridge,Toll Brothers,pulte del web,bella monte. Information and pictures supplied by MLS and deemed reliable but not guaranteed. Proud to wake up, live and work in the great State of Arizona. Contact me at 480.330.0735 or doug0735@gmail.com
