Has anyone noticed listing agents hoarding REO inventory for their own clients? In California, where we now have only 4.2 months of inventory, we have begun to see bank-owned listings marked as contingent within only a minute of being listed, only to return to the market a month later and immediately be bought by a buyer represented by the listing agent. More than a dozen clients, in multiple threads, have submitted examples of these listings on our message boards. We’re trying to figure out what’s really going on and what to do about it. We thought the Bloodhound community might be able to help.
Meanwhile, our partner agents in the Inland Empire of Southern California are also seeing banks take offers on REO properties that are $20,000 or $30,000 lower than the highest bid, on the grounds that the house won’t appraise for the higher offer amount. It seems like the market is trying to set the price, and nobody is willing to believe it (perhaps for good reason).11 comments