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MLS Search | The Wired Buyer | The Wired Seller | About Destin | Local Market Pulse | Destin Links Destin, FL - 9/17/09 "Give me your highest and best!" What is that, you ask? The answer is the most common phrase in today's REO market in the greater Destin area. Those of you who have been reading my previous market pulses know that REO stands for "real estate owned by the bank" and is the term for foreclosed property listed on the active market by the lender. REO's have been the hottest sector in the local real estate market and have been dictating overall market value. Most come on the market at very attractive prices and create instant sizzle. Agents scramble to notify their clients and then rush to submit an offer- usually within the initial 5 day active period. The bank will collect offers during the 5 days and then all who have submitted an offer will be asked for "their highest and best". In essence, what we then have is a silent auction. The bank will look at not only the offered sales price but will weigh any contingencies such as financing terms, length of contract to closing, requested seller's concessions and negotiable closing costs. I have been on the winning side of these auctions where my client came with a full price offer and I have been on the losing side when I have had clients offer ABOVE list price. Let's take a look at 2009 sales for combined residential (single family, condos and townhomes) in the greater Destin area. Total sales we find 769 closed transactions. Of those 769 how many were REOs or short sales and how long were they on the market:
What screams at me is the almost 8 months to close a short sale! They are purposely listed at below market prices to invite offers. And then the waiting game begins. Most buyers do not have the patience to wait for the bank to make a decision. And the answer might end up being a counteroffer instead of acceptance. The REOs while also listed at offer beckoning prices do close much sooner. But that only tells half the story. We need to compare the current active listings as of today (9/17/09):
Only 28 active REOs. Yet we have 381 active short sales. What will happen to those short sales that do not go under contract? You guessed it, they will be foreclosed upon and then become REOs. Typically, an REO will come on the market and if it is not sizzle priced the bank will reduce steadily every 30 days until they reach the sizzle point when multiple offers roll in. Then the call comes from the bank's listing agent, "We are in a multiple offer situation. Please give me your highest and best offer by 5:00". Let the silent auction begin! Sign up below for my weekly email detailing all Destin REOs, price changes and brand new listings. *All statistics are from the Emerald Coast Association of Realtors. Buying or selling, I am the agent that is right for you. Contact me today: Kerry McNulty, The Wired Agent cell: 850.642.1081 toll free office: 800.225.7652 Previous Market Pulse articles: January 30, 2009 June 18, 2008 May 23, 2008 April 8, 2008 February 13, 2008 January 14, 2008 December 19, 2007 October 3, 2007 August 1, 2007 July 6, 2007 June 2, 2007 May 1, 2007 April 2, 2007 March 1, 2007 January 16, 2007 November 1, 2006 October 12, 2006 August 16, 2006 June 27, 2006 April 8, 2006 March 31, 2006 Feb 21, 2006 Jan 3, 2006 Oct. 10, 2005 Sept. 16, 2005 Copyright © 2009 TheWiredAgent.com -- ALL RIGHTS RESERVED. |