The big story about REO listings continues to be their short supply. This is a story I first started writing about in April. At that time, there were 160 active bank owned properties for sale in Sonoma County. As of today, August 15, there are 97 foreclosed single family homes for sale. It’s been several weeks since the number of active listings fell under 100, but it has stayed there pretty consistently.
The law of supply and demand still applies to housing. Few REO homes for sale means greater competition. Most listings are getting multiple offers and a majority of homes are selling above listing price. I prepared this chart of selling price compared to listing price every foreclosed single family home in Sonoma County that sold in July. Each dot represents one sale. If the dot is above the zero line that runs from left to right in the middle of the chart, the property sold for more than the listing price. If it’s beneath the zero line, it sold at a discount. The dots on the zero line sold for the asking price.
Sonoma County Foreclosed Homes Overbids and Underbids
This chart isn’t a guide to bidding on bank owned property. Variables like neighborhood, quality of home, initial listing price, and even the listing agent are important factors when buyers are preparing a bid. However, knowing that a majority of homes sold for more than the list price is a useful nugget of information as you look through the MLS listings here or on other sites. Some deals really are too good to be true as the dot at the far left of the chart indicates. One “lucky” buyer paid more than $150,000 over the listing price to get his home. Many others paid between $50,000 and $100,000 over asking price.
Comments on this entry are closed.