I remember reading somewhere before that you can find REOs for better prices late in the year because many lenders are more motivated to get rid of their REOs at that time to get them off their books for accounting reasons. Do any of you know if there is any truth to this theory?
Sounds logical. But in reality does it matter? Regardless of the season you’re probably going to work just as hard all year so I don’t see why it would affect you. If you get lucky and get more deals in the later part of the year consider it a blessing but don’t base your strategy around it. A real deal is a deal regardless of the month, analyze each one individually…if the numbers work go for it.
Well, I was thinking partly based on how good of a deal I could get, but also the number of good deals I could get at that time of the year because the lenders would be trying to get rid of a larger number of them then. Also, I live in the Midwest where homesales slow down considerably this time of the year. So, there would be less competition from regular homebuyers also.
I’ve never bought a REO before but if I could buy a few good REO deals around this time of the year and have them rehabbed and on the market at the peak time in the spring that could be a very good strategy I would think.
I can definitely see that as a decent strategy, to shoot for completion when the market picks up. That’s a good reason to look at what time you buy.
Good points by both of you. My take is that the banks who are holding properties here in NE WI are looking to get rid of them a little quicker since winter is here. I just got one accepted yesterday after we countered back and forth. I went up 3.5K from my original offer and told them it was my final and best offer and they took. Kinda suprised but I hope this is a trend for the upcoming months.
Nate-WI