What Is The Typical Discount On REO In Your Market?

Question

I realize this question is vague. In SW Florida, houses that don't have major issues such as Chinese drywall appear to be priced about 10-15% below average retail asking prices. There is little margin for investors due to inflated prices. What are typical SFR REO prices discounted in various parts of the country?

Curt Smith · Answer

Aaahh, yes I do remember waay back.  When the winning bid was a discount percent off the asking.   LOL  It's now double digits percent over the ask and yes it's nearly fully fixed retail.

Do a yellow letter campaign to vacants, divorce, probate, code enforcement, late tax payers.  Get the deal before it hits MLS or the steps to REO.  2014 will be alot of out bound marketing and taking alot of cell phone calls looking for deals.

Ophelia Nicholson · Answer

I'm in MD about 10 minutes outside of DC and it depends on the condition. If its bad then you can get a good discount maybe about 10-30% below market but if its even half way decent not live able but decent then its above market. Fannie mae lately has been pricing stuff way above market and just dropping as time goes on- A house I'm looking at 200 days later is still over market value for the condition.

Rick Baggenstoss · Answer

It varies by neighborhood here.  The hotter the neighborhood, the less the discount.

If you knew it was 5% in Atlanta and 15% rural GA, how would this be helpful to you?

Rick