How to figure out how long an REO has been on the market?

Question

Newbie here.  Could some one tell me  how to figure out how long an REO has been on the market?

Dan L. · Answer

you can check the county recorder's website, assessors website, or sheriff's s website to see when the sheriff's sale took place.

often they first hit the mls 30-60 days later depending on who is the seller, the gov't agencies like hud or fannie take longer before listing the property.

this will also give you insight into what the foreclosure debt was, and which bank or institution is the current owner, keep in mind that the debt is irrelevant to the current value, but it is good to have all the info you can get before making an offer and knowing who you are negotiating with.

Ralph S. · Answer

Not only DOM, but the Realtor can get the listing history, which would include original listing price and any price reductions since it was listed.

Timothy W. · Answer

Look for weatherization tickets on the property - specifically on toilets, sinks and/or other plumbing fixtures. Weatherization companies usually write the day they weatherized the property to cover their liability. The day it was weatherized, it has been in the possession of the mortgage company for 30-60 days. This is to protect their interest under the mortgagee clause of a property insurance policy that requires them to weatherize a property within a certain number of days of "vacancy" (with mortgage companies thought, they never know exactly when it went vacant so they do it by when they take possession of it). 30 days after it's been weatherized is likely when the property was first put into the hands of a broker. This should help you figure it out your questions of vacancy and market time. A savvy investor buying in the winter also checks the date to see if the water was weatherized before freezing temperatures or not.

David Breitzmann · Answer

Jeff,

I simply meant the value paid by the lender, not the street cost for a new buyer.  In many cases, there's a large disjointedness between what mortgages are taken out and the underlying "value."

I have found, in neighborhoods I'm familiar with, prices have continued to trend upwards.  This artificial inflation was specific to mostly Northeastern and Western properties.  Those in the Midwest and Southeast weren't as inflated, on average.

Neighborhood-specific activity can be quite removed from reported "national market" activity.

With that underlying assumption, my previous argument, pending an uptick in value, is made.

Phil M. · Answer

Call the listing agent and ask.

Ted Akers · Answer

One vote for Ralph.  Realtors at times  neglect to show the Listing History.  It can provide insight to a potential investor regarding your offer price, but also warnings if the property has been listed for extended periods without moving.

Jeff Warner · Answer

I don't think I'm following your philosophy here. How would 2005 prices be relevant in today's market...2005 was a "Boom" year with heavily inflated prices. Care to elaborate on that?

Jeff

David Breitzmann · Answer

Kenneth has a great point about forming relationships at the tax recorders office.

It is also true that you can get the name of the bank owning the property from the tax assessor website.  This information is public record and ususally at no charge.

One can get the current listing information from a RE profile but there's an additional dimension needed for an informed offer - property transaction history.

If you focus on the DOM for the "current listing" the fact that it may have been a previous REO and listed at a lower price than currently offered is huge leverage.

There are many cases, especially with VA loans, where there is a high turnover on a particular property.  It may have sold, and foreclosed in 2003, 2005 and 2009.

Here's where knowing a neighborhood is vital:

If you can show that the market is turning and the average DOM is climbing it may be appropriate to view the 2005 price as appropriate.  This is especially true if there are many listings in the neighborhood.

I'd be interested in any feedback with an opposing view.

Kenneth Johnson · Answer

Steve,

Go to a Realtor friend, you should cultivate that relationship if you are going to be an investor. I have five close Realtor friends in CA and three in AZ.

Anyhow ask your REA friend if they will do a full Property Profile for you. If you don't have a REA friend go to a local RE Agency and tell them you will pay for a full Property Profile. This shouldn't cost more than $20. You'll soon have a friend. Tell them there will be moe to come. Ask them if you can become a member of RealNet.com, then you can do like 15 to 25 a month for free and you won't have to interupt their day. You can find the info on the MLS under Days On The Market (DOM), but each county has its own MLS in CA. Also the listing may have expired or the property may have been put up for ssale more than once.

Also as said earlier for $4 in my county the County Recorder will print a report on property ownership (i.e. Title Transfers, recorded Deeds, etc...) and they will also move aside the mist giving the name of the current owner (i.e. the bank) and contact info.

Go to a local Title Company and pay for a Title Abstract or Title Search. It will cost you some bucks $75 to $150 or more. Call first and ask about how much it will cost. Here also is somwone you should become freinds with Escrow Offricers and Title Company officers. I had a Title Company president save my clients $8K once because of an early recording and because we used to sit at the corner bar after work titling dragons.

Lastly but not leastly Foreclosure Web Sites like in CA ForeclosureRadar.com will list the property profile, DOM and do Foreclosure Comparables similar to a CMA done by a Realtor. ForeclosureRadar.com is a $50 a month subscription and it is only for CA counties. In Ca try www.HudExchange.com also If you are nationalwide minded try RealtyTrac.com Foreclosure.com or 4closureAlert.com <-cheapest at $30. Ask around as to what your Investment Club and Cash Flow Club folks use as far as Web Sites go in locating REO, PreForeclosuer, FSBO, Tax Liens oppurtunities.

Ken

Jeff Warner · Answer

It says ADOM and CDOM? All the listings I get say DOM and CDOM. I don't know why it would be backwards like that, Agent DOM seems to me like it should be the CDOM. I would take the 262 days as if it was the Total days on market regardless of what it says. I see your an agent? Can't you just go back in the MLS and see when it was first listed?

Jeff

How to figure out how long an REO has been on the market?

Most Popular Reply