ORANGE COUNTY, CALIFORNIA FORECLOSURE UPDATE:
The Orange County real estate market now consists of mostly bank owned properties for sale.
The banks are scrambling to rid themselves of this massive inventory. Listing agents are presently allowed to list at whatever price they want and a lot of them are listing way below market value.
This doesn’t mean the banks will take this low offer. In fact, I can almost guarantee they won’t. Unscrupulous agents are doing this just to get offers in and scoop up buyers (new clients).
I am seeing multiple offers on REO’s to be the norm right now, any where from 90 to 180 days or more for the banks to get back to the offerers.
What does that mean?
Buyers aren’t buying. They’re waiting for a deal that is usually too good to be true.
This sends a wave of unfounded panic to normal home sellers. Home sellers look at these comps and think they too have to list their homes at these undervalued prices thus losing precious equity unnecessarily.
I see that investors are buying these scenarios up like crazy! Preying on unsuspecting homeowners is the biggest way for investors to make money right now, unfortunately.
As Realtors, we have a code of ethics to abide by. Are those agents that are listing ridiculous numbers to blame for declining home values, probably not but they certainly aren’t helping matters.
I feel we need more stringent guidelines and laws on MLS pricing.
I saw a bank owned home today listed at $140,000. The same identical home across the street (non-REO) was listed at normal market value $625,000. I called the listing agent and he told me it was a way to get buyers and offers in.
By the way he had 20 offers in and told me the bank would not even look at anything under $600,000!!!
Is this ethical?
These times call for unity and forethought. Let’s put a little law and order back into the wild,wild west of Real Estate!
For more regional and local real estate market updates, visit the HomeGain Blog’s Regional category.