Our Market
Like many areas especially in California, the local Redding real estate market has been affected by the national economic environment. In addition to the normal homes for sale by their owners, our market also has a large number of “distress sales” which includes Foreclosures and Short Sales.
As you are learning about the market there are a few things to remember. When you see a home labeled “REO” it means “real estate owned” by the bank. These are homes that have completed the foreclosure process and are available for sale at their listed price. The bank has already set these prices and is willing to accept an offer at the listed amount.
A home that is a “Short Sale” will need bank approval to sell for less than what is currently owed on them by the current owner. The list price on these homes is set by the agent and current owner and is not a guarantee that the bank will accept an offer made for list price. Awaiting short sale approval can be a lengthy process but may provide a good deal if a buyer is worth waiting (sometimes upward of 5 months). Some banks have streamlined their processes so the time frames can be as little as 30 – 45 days but it just depends on many factors.
It is a good idea to learn more about Foreclosures and Short Sales whether you are buying or selling as these two types of properties currently make up over 50% of the sold listings so far in 2011.
