Maybe you've heard on the radio, TV, or other sources how you can buy home for pennies on the dollar or something like that.     The Greeley Colorado Real Estate market hasn't declined quite to pennies on the dollar.  But it has declined due to REO (Real Estate owned) or foreclosures.  Some homes that sold for $150,000 in 2004 now sell for $125,000. 

But do banks really take a loss on these properties?  Are they giving them away?   In some cases yes.  But these are homes have quite a bit of damage.  But for the most part they sell these homes at prices that the market will bear.  Most lenders price them to sell quickly as well. 

How do they come up with the prices?  With an appraisal?  Sometimes they use an appraiser.  But most of the time they use what's called a Broker Price Opion and various Automated Value systems.  Most of the time before the bank even forecloses they hire a Realtor to go drive by the home, take a few pictures, and send them a report comparing that property with other similar properties that have sold recently or now are on the market.  Then the Realtor gives a value that he/she thinks the property will sell for in an average amount of time.  I've done about 800 of these broker price opinions in the Greeley area in the last could of years.  Once the property is foreclosed and the bank gets access to it another Broker Price Opinion is ordered from two or three Realtors.  This time the Realtors will go into the home and evaluate it.  Then the bank will compare these broker price opinions together and come up with a list price. 

Different banks and lenders have different strategies for pricing.  Some are crazy and list a property way to high.  Others price them low so they will get multiple offers.  I had 5 foreclosure listings last year that they priced a bit under the market and we recieved multiple offers.  I had two listings in the Gateway Estates subdivision in Greeley last year that were priced at about $137,000.  They both got multiple offers and ended up selling for $145,000.  They were both move in ready homes.  Very clean.  So as you can see you can't buy all foreclosure or bank owned properties for pennies on the dollar.

If your looking for Greeley Colorado Foreclosures or just real estate in general please viist my website at www.greeley-weldcountyhomesforsale.com.  You also can call me at 970-302-1233 or just fill out the form at the end of this article and send me a message.

Thanks,

Marc Oster

Y and M Real Estate LLC

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