REO's going for top dollar ????? NY NJ

8 Replies

So im always searching zillow, auction.com and so on, is it just me, or are the banks starting to ask top dollar for foreclosures ? I know Ive had many discussions with the agent ive been working with, and shes been telling me banks are starting to come in and do minor rehabs, throwing the properties up for sale for just bellow market value. If this is the case should I start looking into other possibilities? any recommendations would be great. Thank you

Michael Gessner, Contractor

I know I've seen this happening in my area. I've had better experience with "fair market" transactions listed by motivated individuals.

My advice is to have your agent to set up a search for vacant houses with key words like 'fixer-upper', 'probate', etc.

You probably won't be able to pay list price, but maybe they're willing to make a deal?

Rob Drum, Real Estate Agent in AL (#112849)
205-253-8756

Rod Drum, thank you for the advice I will be discussing this with her, I will also broden my search area. I think where I am currently the market has become over saturated. 

Michael Gessner, Contractor

In my area of NY the REOs are listed much higher than they should be. I run my numbers and they are consistently $20-30k higher than anything that I can work with. The issue... people are buying them! The few I have been able to come in right around list price (a couple thousand below) and they sell to someone else. This has happened 4-5 times now, and a lot more times where I make my best offer however it is a bit less than ask. 

Either other investors have "ins" and can get work done much cheaper than I believe it costs (based on what I was paying in CT) or they are ok making very little profit. It's been rough trying to lock something in, so I have a few avenues I'm pursuing.

Brian Pulaski, I agree 100% I'm new to the field of real estate investing, I have an amazing seasoned agent who has thought me as lot, I can't see how in the world these investors can make a dime. I'm looking to do the rehab in house with my laborers and I still can't seem to find a decent profit after running the numbers. I'd love to talk further if your interested. 

Michael Gessner, Contractor

@Michael Gessner sure if you would like to connect I can offer any knowledge I may have. Before moving to NY I did 5 flips all in a row. Never had any down time, never had issues landing houses (mostly MLS as well). Since moving out here I am running my numbers like I did before and making offers with nothing sticking.

I watch houses as they sell and am shocked what people are paying. i have turned to off market deals and bought my first list to go after.

During 'the crash', they were absolutely giving them away for low prices bc they had too much inventory.  The problem turned out to be, that just when you thought you got the best deal, they would sell another property for less! .. this ran the housing market into the ground.  Once things leveled off and inventory got manageable, they started to work for market value .. often by pricing above their appraisal.  This increased property values.  It's now been that way for several years.

Phil Z., Real Estate Agent in Connecticut (#REB.0789205)
203-936-7776

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