Bank REOs for Sale

Many investors find that the best prices and best deals on real estate are on foreclosures, or distressed properties. Many investors look at short-sales, which are pre-foreclosure sales, on properties that are worth less on the open market than what is owed on the property. Other investors buy at auction, which is the end of the foreclosure process, where properties are purchased for cash to the highest bidder on the courthouse steps.

I am now looking at post-foreclosure properties that have reverted back to the lender. Banks call these REOs or Real-Estate Owned properties. Most investors tend to wait until these REOs are listed on the Multiple Listing Service. There are 58 active REO listings in Seattle on the NWMLS today. There were 261 sales on the NWMLS of REOs in Seattle in the past six months. These REO houses typically sell for 102% of list price within the first 30 days on market.

However, it is possible to purchase these properties directly from the bank BEFORE they are listed on the open market. This is the space in which it is possible to find the best deals, at the best prices, and with the least amount of competition. From time to time, I will use this blog to identify these REO properties in Seattle that I think may be of interest to investors and other bargain hunters.

Here are just a few I like right now.

One is a fire-damaged property on Delridge Way SW in West Seattle. It is on a 4986sf lot zoned NC2-40 (see previous post for examples of commercial zoning and uses). The value is in the land here. The current tax assessed value of the land is $248,400. However, the bank had advertised this property previously for over 200 days on market at $235,000 and it did not sell. I spoke with the bank REO department, and they are willing to negotiate and open to receiving offers now. This property would be of particular interest to a small builder or developer, keeping in mind that there will likely be a parking requirement by the City as this is not in a designated Urban Village.

Another land parcel is located adjacent to Westcrest Park in West Seattle. It is a 30,075sf raw land parcel zoned SF7200. So it is possible to build four homes on this parcel. The tax assessed value of the land is only $129,000 and the previous owner defaulted owing $93,000 in taxes and penalties to the bank. This parcel will eventually be listed for sale, based on a bank appraisal of value.

The third property that I like is a charming 1946 view home in West Seattle, with 4 bedrooms and 2.25 bathrooms, and 2160sf. Zillow puts the value of this home at $493, 274. The last sale on this property was for $350,000 in 2002, and Realist puts the current value around $521,000. It is not yet determined when this will come on the market.

If you would like additional information on these or other REO sales in Seattle, please message me privately at HomeLandInvestment@gmail.com.

Happy Investing!

Bank-owned, short sales and other distress sales in Seattle

This home featured on our FREE Sunday Tour of Bargain Homes this weekend!




The best time to snag those housing deals is in the dead of winter, when the other buyers have gone home! Our November 13 Second Sunday Tour of Bargain Homes features properties owned by MOTIVATED SELLERS!

Here are six bargain properties in North Seattle, priced $179,950 - $349,000, each with a minimum of THREE bedrooms, that have been on the market 120 days or more! Looking for cash flow rentals in the city limits? a bargain on a first-time home? Look no further than these great bargain homes. The tour is FREE, no obligation, no reservations required. Just mark your calendar for this Sunday, Nov. 13 and come join us!





To be notified of upcoming Sunday Tours of Bargain Homes, go to www.SundayBargainTour.com or call our free 24/7 recorded real estate hotline at 888-621-4999 x4.




And now, for details on our featured listing:
This is a charming 3 bed room home in Maple Leaf area. It has a strong partial view of Eastern Washington Cascades. The property has had recent interior and exterior upgrades. It is in good condition in need of kit & bath and basic TLC upgrades. Move in ready! Wonderful area with schools, theaters, parks and shopping abundant within walking distance. Gas log in fireplace! Large back bedroom with separate entry.




Home Land Seattle. Advertised in compliance with NWMLS rule 190 with permission on behalf of RSVP Real Estate.

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!

FREE Tour of Seattle Foreclosures!

It was reported this morning on NPR that 60% of all homes sold nationally are foreclosures. Buyers and investors are looking for bargains, and bank-owned properties offer significant discounts over retail, private sales.

If you are looking for foreclosed bargains in Seattle, you are welcome to join our FREE Tour of Seattle foreclosures this Sunday. Just show up at the first house at 1 pm SHARP! (Please note that times are exact, so don't be late)!

The first house on the tour is located in Broadview, at 12743 3rd Ave NW. Here is the tentative schedule this Sunday:

1 – 1:15pm: 12743 3rd Ave NW $269,000
1:25 – 1:40pm: 9242 Palatine Ave Ct N $449,000
1:50 – 2:05pm: 701 N 86th St $299,000
2:15 – 2:30pm: 330 NW 75th St $350,200
2:40 – 2:55pm: 8537 19th Ave NW $499,900

You will pick up maps and detailed listing information at the first house.

No reservations are necessary; no sales pressure, no obligation. You drive your own vehicle, so you may stop at whichever homes you wish to see. As a part of a larger group, you will have opportunities to learn from the constructive comments of your fellow tour members.

For more information, please message me privately or contact our 24/7 recorded information hotline at 888-621-4999 x4.