Temecula's Rising REO Inventory... There is more to it than what meet's the eye
In Temecula, there are now 115 REO, otherwise known as Bank Owned Active Listings. At the market's bottom (mid 2009), there were only 40 active Bank Repos in Temecula. These numbers could seem fairly alarming to most buyers, and in all honestly, I can completely see why buyers are back to sitting on the sidelines, as it is up to us, as Real Estate Professionals, to educate our buyers on market conditions.
If you look closer at the 115 Active REO homes in Temecula, you will see that over 50% of them are "Fannie Mae" homes, which, in my opinion, Fannie Mae Homes are priced 20-25% above fair market value. They typically sit for months on end, and endure several price reductions, before the "seller" becomes realistic with the home's fair market value.
That being said, homes that are priced correctly, whether it be an REO (Bank Repo) or Standard Sale (Probate, Investor Owned, Traditional Owner with Equity), are selling within 60-90 days of being listed on the Multiple Listing Services with a Realtor.
Moral of the story? Educate your clients! Don't let your buyer's control the conversation based on "media reports, or a neighbors opinion on the market", give them factual data, and SHOW THEM why NOW is as great a time as any to purchase a home!
