Is it a good idea to buy an REO?

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waiting_to_buy_IHB

waiting_to_buy_IHB

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I know that it has been said many times that right now is not a good time to buy. But what about the REOs?

A realtor told me how everyone wants the good deals and those types of houses gets sold within days out of the market. How true is this? also, since its sometimes 10-20% lower than the market price, would this be a good option to buy in this kind of market?
 
<em>A realtor told me how everyone wants the good deals and those types of houses gets sold within days out of the market. How true is this?





</em>ROFL! Yeah... they get sold in days, but that is after months, and months of being on the market. Maybe days after the price reduction that the bank finally says, unload this piece of crap.


<a href="http://forums.irvinehousingblog.com/discussion/1727/">


See this thread</a>. <a href="http://forums.irvinehousingblog.com/discussion/346/">This thread too</a>.
 
<em>since its sometimes 10-20% lower than the market price, would this be a good option to buy in this kind of market?</em>





Two issues: 1) It is a very real possibility that the market price will continue to fall for some time; 2) What if they are 10% lower than regular comps but needs significant repairs that would offset the difference and actually make it more expensive?
 
<p>awgee Be nice young man!! </p>

<p>Waiting2buy I think there was a good discussion on this subject a while back. The price needs to be based on closed comps as well as how many pending REOs are in that area and what your expectations of the future market is. It would be helpful to know how many NODs are filed in the area to estimate future listings.</p>

<p>Enjoy </p>
 
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