Hello Dear Friends,
Good news! Redfin is now touring and working with MLS listed bank-owned foreclosures and REOs (real estate owned) in the MD, DC and VA markets. Previously, we had shown these homes for sale on our site but restricted our clients from touring or offering on these properties. At first, we were worried about overwhelming our capacity (both on touring and offering) and our early experiences with the banks had been less than favorable. Fortunately we now have the staff and experience to handle this demand while still delivering fanatical customer service. Also, we’re happy to report that banks have actually improved the way they handle REO sales in the past six months.
Just how many bank-owned foreclosures are there in the DC area? Stats man, Mose Andre, took a look at the percentage of single-family residence homes for sale that are being sold by a bank as indicated by a flag in the local MLS and by scanning the text of the listing for terms like REO, foreclosure, foreclosed, etc.:
To assess the effect that foreclosures were having on the remaining inventory, we graphed in green the average asking dollars per square foot for listings on the market, excluding bank-owned listings. Since we measured price changes in terms of average dollars per square foot, we excluded any listings where the square footage was zero.
For more information on bank-listed foreclosures and REOs, check out our recent blog post on REO pricing, negotiations, and what it’s like to work with banks. While you can get a great deal on an REO home, remember that banks won’t be paying for any repairs (like the mold damage found by some Redfin Forums readers). There are tricks to success; so do your homework, ask a lot of questions, and be ready to pack your patience!
When you see a bank-owned property on our site and want to take a tour, please let us know by clicking the Go See This Home button on any home or by contacting one of our lead agents! If you have questions about our new policy or any heartfelt suggestions, please post them here or contact us directly.
I know this has been a frustration for a number of users. Although we are not going to change our minds about short sales anytime soon, we now welcome and embrace working with REOs.