Real Estate Market: Banks Will Release REO’s This spring

  What does this mean… Well…let’s think like a bank today.  What happens to the market when rates spike… it creates a sense of urgency to buy before the deals are gone and prices go up! When rates go up; who earns more interest on these new loans?… The answer is the banks do!  So why are they waiting to release the remaining REO properties in their portfolio?   No one wants to sign off on a loss and admit they wrote a bad loan.  The banks are waiting for rates to go higher and to create that sense of urgency to buy. This urgency causes sale prices to gradually spike as more and more people purchase these deals.  Once the prices balance out, and  we start to see a small light of a returning market, the banks will release the rest of their REO’s in order to minimize their potential loss.  Higher sales prices = less of a loss, and higher rates = more interest earned. All of the potential listing clients out there that want to sell this year, but plan to wait a little longer, are going to lose out.  Once the banks see a better light, they will seize the opportunity to release the REO’s.  Now your home must compete with a home the same size, same number of bedrooms and baths as yours, at a discounted price. So doesn’t it make sense to sell right now! LIST that home TODAY, LISTEN TO YOUR AGENTS SUGGESTIONS and SELL FAST or get prepared to get COMFORTABLE where you are!