There is a misconception out there that REOs are the cheapest around, some thinking 30-40% lower than market, but they are not! Just look at the average price/sq ft of each type of sale:

From the above stats, we can see that:

1. REO compared to Standard Sale: 8% Cheaper
2. Short Sale compared to REO: 2% Cheaper
3. Short Sale compared to Standard Sale: 9% Cheaper

Here’s how it works:

REO: The Asking price is ≈20-25% lower than market price, not the selling price! Banks ask for the best offer, multiple offers come in because everyone think they are getting a deal and thus making the buying price ultimately higher. The buying price skyrockets closer to the standard price, which is why REO’s are only 8% cheaper in Eastvale’s stats.

Standard sale: Asking price starts off high, and buying price veers downward.

Short Sale: Asking price is originally lower (About same or a little higher than REO’s Asking Price.) After negotiating with the bank, the bank usually approves ≈±3% of the asking price. 1st person to match that price will get the property. Yes, it may take longer, but the savings are tremendous!

Not quite convinced yet?
My  Short Sales’ average selling price is $100-106/sq ft.!

Short sales are cost-effective, but my listings come out even cheaper! I have been able to get a lower price because I know how to negotiate with the bank for the best price! I never have a problem getting a buyer, but am always on the lookout for the most qualified and suitable buyer! Could that be you?

Chapter 5: How Long Do I Really Have to Wait to Buy a Short Sale?