Notes: 03/20/08
Market Activity
Stockton is Averaging 15-20 new REO listing per day and 20-25 new REO sales per day (inventory is
dwindling), and 4-5 closed REO sales per day
This is about 600 sales per month which is more REO's being sold per day than we were selling all MLS home listings in a the fast market we just came out of.
Condition
There are many bank owned (REO) properties on the market in
Stockton and Lodi. We can place them in several categories:
1. Good neighborhoods, clean and ready to move into, priced at
or below even the REO market. These properties are being sold in just a few days
with multiple offers, many going for $20,000 or more over the asking price.
2. Good neighborhoods, but properties (are or were) priced over
the market. and/or not so good condition. Most of these need paint and/or carpets. After some time on the market and
several price reductions they can be good buys. This seems to be the bulk of the
market.
3. Beaters in both bad and good locations that need total rehab. These are the
properties that look good on paper but in reality, give all the other bank owned
properties a bad reputation. The majority of thes properties need $20,000 to $40,000 in repairs to make them livable. Some of these properties are so bad, nothing short
of a tear down could make them right.
Qualifying
When buying a foreclosure, the owner (the former lender) is
going to need a pre-qualification letter or pre-approval letter from your new lender along with the
offer.
When Wells Fargo or Countrywide owns the property, you will need
to qualify with one of their loan officers. After you have a qualification
letter you can still use your own lender.
If you do not have a lender, May I suggest calling us for a list
of excellent loan officers.
Inspecting Homes
With over 3,000 homes on the market (normally there are only 600
or 700 homes for sale) I need to work a day or two ahead for appointments.
Lockboxes
More than half of the seller's representatives have not invested
in electronic lock boxes, so we have to call ahead to try to reach seller's
representative that may not return our calls until the next day (or maybe
never).
I am very happy to show you any of the available homes and act
as your buyers agent. Remember the bank's listing agent is representing the seller.
Call me at 209-951-7521
Gene Wright
