How long before the house is on the market?

Okay I realize this is probably a hard question to answer... Lets assume everything goes smoothly, how long before a REO property gets listed? It was bought by the bank at auction on april 6. Is there a ballpark estimate anyone can give me? I figured it might show up on the market any time now. It has been almost 3 months since the auction. Maybe a best case and wost case scenario would give me a good idea. Ideally from someone who has experience with this type of situation. Thanks!

Edited: 06/26/2010 at 08:41AM

Scott M.

Real Estate Investor · Rochester Hills, Michigan

632 posts
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Icon_minipost Jun 22 '09, 01:01 PM

No rhyme or reason - some never get listed as they are sold before they are listed.

I have seen some show up within days (they arelady had their BPO and were ready to go).

I have seen others take months.

I would say 3 months is a good average but remember that means some take a few days some take 6 months and as I said - some never show.

Edited: 06/26/2010 at 08:42AM

Daniel Bruckner

Real Estate Investor · San Clemente, California

15 posts
66 Influence

Icon_minipost Jun 22 '09, 01:28 PM

As I watch the properties that I don't get a short sale approved on (mostly CA), I find that it takes on average 30-45 days for them to post with a listing.

Bear in mind, some of them get sold before they even get listed due to those investors who have access to some REO asset managers. Sometimes tehy'll go ahead and want to list the property first, sometimes they are open to selling before a listing.

It all depends on the bank, investor and ultimately your relations with the lender and your ability to convey the psoitives of selling beforehand.

Also, there are situations where the drawn out connundrum of "which hand is doing what" keeps it off the market for more than a few months.

Edited: 06/26/2010 at 08:42AM

Ryan D

Real Estate Investor · Pittsburgh, Pennsylvania

53 posts
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Icon_minipost Jun 22 '09, 01:43 PM

Hey guys thanks for the great responses. This is my first investment property and I'm not too familiar with REO deals. I noticed that both of you mentioned that some properties don't even make it on the market. I thought that was a rare occurrence b/c from what I have learned, banks don't usually talk with/sell directly to people like me "behind the scenes". That being said, would it be worth it for me (first time investor) to try and contact the bank?

Edited: 06/26/2010 at 08:42AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
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Icon_minipost Jun 22 '09, 01:52 PM

You can always try. Nothing ventured, nothing gained.

Do find some more properties. Sounds like you have you're watching. Find 50 to look at, make 25 offers, and you'll buy one. If you just have one house you're after, you're nearly certain to be disappointed.

Edited: 06/26/2010 at 08:42AM

Jon Holdman, Flying Phoenix LLC

Ryan D

Real Estate Investor · Pittsburgh, Pennsylvania

53 posts
200 Influence
1 Award

Icon_minipost Jun 22 '09, 02:00 PM

That is true. I have been looking but not too serious. I feel like I have the upper hand on this one. Of course if it gets swept right out from under me I will have wished I did things differently.

Edited: 06/26/2010 at 08:42AM

Kyle Richter

Inspector · Houston, Texas

33 posts
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Icon_minipost Jun 26 '09, 06:38 PM

Jon,
I've read here on several occations about making multiple offers...Like you said. "find 50 and offer on 20" What am I missing about that? I haven't found anyone that will accept an offer with out an earnest check...So, for startes..that's a lot of "earnest money" floating around (for me it would be) but secondly...what if you actualy get accepted on.....oh lets say, more than one...I coulndn't afford to do more than one at a time. I'm sure there's something that I'm not understanding here. but I have been making offers on a property and waiting to see what happens....2008 I only got 1 accepted.

Edited: 06/26/2010 at 08:45AM