Monday, September 12, 2011
Discount on Seattle Bank REOs
There have been over 500 sales of bank-owned properties in Seattle in the last six months. 45% of these listings sold within 90 days for 95% of the original asking price. The remainder sold for 90% of the original asking price.
16% of the so-called "Seattle" REO sales were located in Skyway, White Center, Des Moines and North Hill, areas not actually within the City limits. The median REO sale in these communities was for a three-bedroom, 1.75 bath house with 1500sf that sold for $140,500.
Eliminating these areas from consideration, the typical Seattle REO sale was for a median home with three bedrooms, two baths, 1660sf that sold for $260,000. 53% of these sales sold within 30 days for 100% of original asking price (many sold for more, one in particular sold for 39% more than the asking price!). And as for big cash discounts, it is rare to see a discount of more than 20% of asking price.
So cash buyers may get good deals on REO's but primarily because banks discount the list prices so heavily to attract sales within 30-90 days. Deeper discounts are typically available outside high demand neighborhoods, for cash buyers, on properties that most other buyers have already passed up. The biggest discount in the hot Seattle zip code of 98115, for example, was no more than 5% of the asking price (and the median REO there sold for $350,000).
So when making offers on a new listing for a Seattle REO in a great neighborhood, be prepared to offer full price - and act quickly!