Sold on Sacramento

Archive for October, 2009

Sacramento’s REO ” Shadow Inventory “

Call Nate (916)332-1292

I have been missing in action from my blog for some time now. For the last 6 months I have been working more than full time and an active auction investor. It is a great time to be an investor and I have been enjoying the challenge.  Let me assure you that it is a challenge, every day.  I’m telling you this because I happen to know the secret behind the ” Shadow Inventory “…………………………………………………………………………………

Were you waiting for the secret ? Almost all Sacramento Buyers Agents and the Buyers that have been beat up and abused by this market, talk about the “Shadow Inventory”. This is the inventory believed to be waiting on the banks books to be released to market. It is commonly believed that thousands of distressed properties are out there. Buyers everywhere are sharpening their knives and preparing for the REO feast, and the poor banks that will have no other option than to sell them for pennies.

Sorry to keep you waiting. I have terrible news for you, there is no shadow inventory. That’s right no shadow inventory. Right now the banks are holding about 4 months worth of inventory here in California. It takes them on average 7.5 months to process an REO property. That means that the REO inventory will be fully disposed of by next spring.

Why ? The flood of REO’s has been plugged up and partially salvaged buy the various government programs and the Loan Modification programs. I wont get into those topics in this article but they have significantly slowed down the number of foreclosed properties. At this point I expect that we will see the number of REO properties made available to be less than consumer demand here in Sacramento.

The Sacramento home buyer currently serious about finding a home will need to be aggressive once they locate the right property. All of my listings are receiving multiple offers and typically the best offers are well above the asking price. The way the offer is structured is more important than ever. Your choice in lenders could be your most critical decision. I highly recommend finding an Agent that is up to speed with the current market and has a team of professionals that can make the deal happen.  If you would like to talk to me about successfully buying or selling in the current market feel free to give me a call at (916)332-1292.   Thanks, Nate