I'm thinking about submitting an offer on an REO property.
The price was just reduced today fairly dramatically.
I took a look at the property and it seems to be a good candidate.
My only concern is there are a large number of homes for sale in the area (particularly fsbo).
I checked to see if the school district had recently changed or a spike in crime had occurred. Neither seem to have happened.
Should I be concerned?
Not knowing which area you are talking about it might be kind of hard to give a definitive answer. Nevertheless, alot of houses being for sale is certainly not going to help from a price appreciation perspective. Has this trend been like that for a certain time or did these houses hit the market just now?
Patrick, since this is the fix/flip forum, I am assuming you are flipping. Do you have a real estate agent? If so, have them run a quick search for comps. Pay special attention to market time on the comps. If there is one or two that are sitting, maybe they have a problem. If they all sit, perhaps a buy and hold strategy is a better investment.
I think it was J. Scott who wrote "always have at least three exit strategies, in case one doesn't work." How is the local rental market? You did some good research, and sometimes a good deal gets missed by others and seems to fall right into your lap. Have you hooked up with any BP-ers in your immediate area? Run the neighborhood past them, too. Good luck!
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