I have been checking one of the San Diego County Trustee Sale websites and have noted a marked increase in sales on the courthouse steps.
While the majority continue to go back to the beneficiary there are a surprising number going to Third Parties. And some of the Third Party sales are going at or near market value.
Does this mean an increase in Homebuyers taking the risk of buying on the Courthouse Steps or are investors willing to pay slightly more than they want to in order to avoid the purchase process once a Bank relists the REO's?
My gut feeling is that if a Buyer identifies a property they really want they are going to take on the additional risks on the court house steps and it doesn't matter if they are Homebuyers or Investors.
What does that mean for the market?
It means if a Buyer has a specific house, school district or zip code they are searching for then waiting for the REO to come to the market via a Bank assigned List Agent may mean too long a wait or too high a list price. some Buyers may think it's better to get a jump on it and buy it at the Foreclosure Auction.
Just make sure you know all the pitfalls of that process because the minimum bid may sound like a bargain but hidden costs (tax liens, repairs, and eviction) may mean time and money beyond what the buyer can bear.
Remember, Buyer Beware !!
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