Frustrating REO dilemma...
What's everyone's take on REOs in your area? I don't know if it's because so many newbies have jumped on the REI bandwagon (including myself), but in the past year I've noticed that REOs have gone up significantly in price—and even then, there are almost ALWAYS multiple offers and they wind up going for way over the asking price, sometimes 10-20k.
Right now, the average price for a 3/1 SF is about 89k (last year, they seemed to be more in the 40-50k range). Mind you, the average ARV in this area is typically no more than 165k. Unless I'm missing something, there doesn't seem to be much of a spread there, if any–-also factoring in repair amounts & financing, of course.
On top of that, the private sellers who call me back from my direct marketing aren't that motivated, either—they always seem to want market rate for fixer-uppers that they don't want to repair & list on the MLS.
That being said, I'm wondering if I need to think about another strategy or REI niche—although I'm not sure exactly what at this point. Have any of you experienced the same dilemma in your areas?