Real estate comps are what truly govern whether you make a profit on a property when you buy.  Learning to use them wisely is the name of the game.

There are several investors, both domestic and international,  that have taken notice of the benefit of solid real estate comps.  They are using them to make deals happen with REO’s or bank owned property everyday.  Just this week I shared an article from my local market that discusses the falling prices and how now is a great time to benefit.

The keys to cashing in on REO’s are knowing what is needed to make the property marketable.  Nine times out of ten an REO is going to need some type of repair.  This is something to factor into your equation.  How much repair or renovations are necessary can determine what your asking price will be.

Staying ahead of the game when selling is important as well.  One way to make that happen is to stage the property nicely.  Whether you are a DIYer or decide to use a professional stager,  making the buyer envision themselves living in the home is a guaranteed sale.

Working with InvestorCompsOnline helps you to do all these things and more!  Check out our website today!

Happy Hump Day!  Let’s step away from real estate comps for a moment,  I wanted to share an interesting article with you from my local paper.   It discusses property prices falling in the Atlanta area,  but we as investors know this phenomenon is happening all over the US…..

Metro Atlanta home prices fared poorly compared to the national average from July to August, the latest Standard & Poor’s Case-Shiller index of home prices shows.

Nationally, the index ticked up by .2 percent between July and August in the 20 cities tracked. But Atlanta was the chief laggard, showing a 2.4 percent drop.

Metro Atlanta prices were 6.3 percent lower than they were in August 2010, while the national average was down 3.8 percent. Only Minneapolis, Portland and Phoenix had higher year-over-year drops in value than Atlanta.

Jim Grissett, a real estate investor and professor at Emory University, said many forces move the market now, including falling prices and inventories, government refinance programs, interest rates and a large move into the home market by investors. So focusing on monthly gains or losses in prices can be misleading, he said. It is more helpful to look at the year-long movement of prices.

Among the 20 cities, Atlanta is in the lower third based on home price losses.

“That is not good news, but it is not as bad as it might appear when you look at that negative 2.4 percent [monthly] drop,” he said.

There are some positive trends in metro Atlanta, Grissett said.

“If you look at supply, price and demand, I am much more interested in what is going on with demand,” Grissett said.

“We know we have excess inventory,” he said, but the sooner buyers soak up that inventory, the sooner prices will stabilize.

Metro Atlanta home closings rose through the summer, according to SmartNumbers, a Kennesaw real-estate tracking firm. There were 4,138 closings in September, up nearly 25 percent  from September last year and the fourth straight month that home sales increased at a double digit pace.

However, the average sales price was $162,491, 11 percent lower than the price in September of 2010, the firm said. That average price is about the same as in 1997.

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Happy Tuesday People!
Today I wanted to stay along the same vein from yesterday discussing  real estate comps and REO’s or bank owned property.  I have a few more things that you should think about when dealing in these types of real estate investments.

Typically bank owned properties are priced at least 10-percent below market value. However, options exist that allow buyers to obtain additional discounts. The first involves buying homes through Fannie Mae’s Home Path Mortgage program.   Home Path was created to liquidate their nationwide inventory of bank foreclosures by offering special financing options. Home Path can be a good choice for buyers with bad credit and those who cannot afford down payment requirements associated with conventional home mortgage loans. 

Another way to buy bank owned property at discounted rates is by seeking out real estate investors who buy bank portfolios. When investors purchase foreclosure properties in bulk they obtain wholesale pricing which leaves them room for profit while selling real estate below market value.

Last, but not least, buyers should consider looking for bank owned property that has been on the market for 60 days or longer. Banks will sometimes negotiate prices when real estate has become stagnant or when no one submits an offer.  Using grants in conjunction with Fannie Mae foreclosures or wholesale real estate can further maximize savings and return on investment. Those who take time to research options and become educated about the process can potentially save upwards of 30-percent or more.

Are you currently investing in REO’s real estate properties?  How are you making this type of real estate work for you?  I would love to hear from you!  Please click on the comment tab above and let me know how you are maximizing on this market!

Keeping abreast of the current standards for purchasing REO’s or bank owned properties keeps your business progressive.  Check back tomorrow and I will discuss a few more things to keep in mind when working your bulk deals.