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With 2 Percent of Precincts Reporting

With 2 Percent of Precincts Reporting

Just heard from a friend of mine through Google+ who spoke with a friend who handles BPOs (broker price opinions) for lenders getting ready to list bank-owned properties. Apparently, the phone started ringing off the hook yesterday which meshes with what I was hearing from my former brokerage as well about a sudden surge in BPO requests.

There are a lot of things that can go sideways from the time a bank orders a BPO to the time a foreclosed home appears on the market, but it’s hard to view the phones starting to ring again as anything but a good thing.

Well, unless you’re a seller whose got equity in his property and you’ve been waffling about what to do.

In general, you’re going to get more money for your home when there are 8,100 detached homes in the market in Maricopa County than when there are 13,000. Might want to accelerate your time frames a little bit in that case.

Photo credit: David Paul Ohmer via Flickr Creative Commons

Comments

  • Another Investor says:

    I’m thinking of selling an older home with a pool in the East Valley using the Fannie sales strategy.  I will slap a cheap two tone paint job on the interior, replace the carpet, and price it between 10 and 15 percent over the most recent high comp.

    Or I might sell an average newer small to mid-size house south of 10 in Goodyear by pricing it at the arbitrary $100 per square foot Fannie wants for those properties now (check the two current Fannie listings in Cottonflower for the evidence).

    If in the past Fannie has not emphasized rents in the BPO requests, my guess is they intend to bulk sale these properties.  It’s clear they are on a mission to “stabilize” (i.e. raise) prices in the Phoenix market.  Logically, clearing inventory out will raise prices.  Heck, that logic is working already!

  • Another Investor says:

    Jeff,

    The fact is Fannie Mae only owns around 200,000 properties nationwide now.  Absorption in the Phoenix market appears to be around 8,000 properties per month.  Even if 5 percent of what Fannie owns is in the Phoenix market, they could dump them all on the market tomorrow and the absorption would be close to instantaneous, if they priced them reasonably.

    Spend an hour or two with Jon on the ARMLS website and let him show you the actives, AWC’s, pendings and recent solds.  He will make a believer out of you.  The demand is real.  It’s a seller’s market, at least right now.

  • I’m really hoping they don’t go the bulk sale route – there’s no need to go that direction, not right now. Would have been an excellent idea a couple of years ago, which seems to sum up almost every lender’s reaction to this entire scenario.

  • Another Investor says:

    Looks like they are going the bulk sale route….

    http://www.mortgagenewsdaily.com/05072012_gses_reo.asp

  • Question is how many homes really are here to send via bulk sale. Understanding the idea that it takes work to get the home on the market, I can’t imagine it’s so much work that the costs aren’t covered in the final sales price.