Snow capped peaks mean business for North Conway NH

Posted at 11:18 AM, Nov. 10, 2007

Commercial real estate helps insulate North Conway and Ossipee Markets

Posted at 11:09 AM, Nov. 9, 2007

North Conway Real Estate surge in Sales

Posted at 10:25 AM, Aug. 4, 2007

As the housing market starts to heat back up, one of the hardest decisions facing home sellers is how to price their properties.

Traditionally, brokers have set listing prices by reviewing how much comparable homes sold for in a neighborhood. Now, with prices edging lower in many places and the number of homes on the market climbing, checking comparable sales is becoming less useful. At the same time, many would-be buyers are sitting on the sidelines, waiting to see how far prices will fall. Bigger inventories of unsold homes also are making it harder for sellers to figure out how to make their house stand out amid the competition.

For sellers, a seasonal surge in sales means that this is the time to be priced accurately. This does not mean only $15,000 over the probable selling price. This means that the property that are obvious bargains will sell before the end of the season. So make your property an obvious value.

 For buyers, this means that sidelining could result in the loss of the property that you have decided to watch and wait. Unlike stocks and bonds, each house is unique and therefore subject to it's own type of supply and demand. All it takes is 1 other buyer to want the same property and suddenly there is more demand than available supply. The thing to keep in mind is that the entire market is representative of the recent slump in values. If you buy now, you may not be at the very bottom of the curve: It may have already come and gone, or it could still be ahead. Your goal should be to buy somewhere near the bottom of the curve and that is where we are right now. 

Real estate is still a long term investment. The recent boom years are not the norm. Keep this in mind as you look at minute by minute snapshots. Just ask anybody that bought a home in 1986 and DID NOT try to sell it until 10-15 years later.

Bank Owned foreclosure property for sale in Conway NH

Posted at 6:58 AM, Feb. 1, 2009

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03818-Conway (Conway Village)

FOR SALE $119,900 Bank Owned Home

	Badger Realty
	Bill Barbin Email Bill Work: 603-986-0385 Cell: 603-986-0385
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121PleasantFront

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	Address: 121 Pleasant St. Type: Residential Style: 2 Story Bedrooms: 3 Bathrooms: 1 Suite: No Living Area: 1,448 square feet Year Built: 1895 More Details

	Description
	Foreclosed Home in Conway Village. Bank Owned 3 bedroom colonial for sale. Acces to village sidewalks. Close to elementary school, middle school, Conway Library, doctors' and dentists' offices, Saco River Beach, Tennis courts and all local village amenities. Good condition. Whirlpool Tub with shower, Laundry Room, Large level lot with lawn. Close to Pequwaket Pond. Short drive to Conway Lake and Pea Porridge Pond. Foreclosed price. Bank Owned home. More Description

Short Sale starter info.- a solution for foreclosure

Posted at 6:49 AM, Feb. 1, 2009

A short sale is a sale that occurs when the lender(s) agrees to take a price that is lower than the loan amount. This is put into place when an owner can see foreclosure coming down the road, whether it's from loss of income, need to relocate or any of the other reasons that a home can become a bank owned property for sale. Short sales are a common solution these days. It isn't a great answer for a homeowner's financial problems but it is still better than a foreclosure on a credit report. Both are damaging, but the short sale doesn't last as long.

The key to the short sale is early preparation. This is a resolution that needs the lender to be on board from day 1. Most lenders require an active listing contract with a broker and active participation in the preparation process by the broker. A short sale also requires cooperation amongst any second loan/equity loan holders. A clear accounting of the owner's financial condition needs to be prepared, a fair market appraisal will be ordered and the property needs to be marketed at a fair price.

In the North Conway NH area, which has plenty of foreclosures for sale, the best first step to take is to contact a trusted real estate broker that has experience with helping people through a short sale process. If you need help I am available to help you with this process. Contact me, Bill Barbin, at Badger Realty: 603-986-0385 is my cellphone #.

Bartlett NH and North Conway NH bank owned sales history

Posted at 6:33 AM, Feb. 1, 2009

Here are some more great examples of Bank Owned and Foreclosed property sales. These are properties for sale that closed in Jackson NH and Bartlett New Hampshire in the last 200 days:
www.BillBarbin.com

Bartlett NH - 467 Jericho Rd. Foreclosure Sale
A 2 bedroom 1 bath home. Approx. 3 miles from Badger Realty Jackson Office.
Asking Price for sale at $37,900, Bank Owned sold at $33,500 on 12/31/2008
On the market for 301 days with original list price of $141K+/-.

Bartlett NH - 92 Wilhelm Place at Linderhof / Christmas Mountain area Bank owned
3 Bedroom 2 Full bath Chalet in Good location and in Good condition, with fee access to golf and pool and tennis. Near Storyland. 1 acre lot. 2 miles from Badger Realty Jackson Office.
Asking price for sale at $174,900 Foreclosure sale at $174,900 on 11/17/2008

Jackson NH - 47 Dana Place Rd. #3 Foreclosed
New Hampshire gem. 5 Bedroom 4 Bath condo just minutes from Wildcat. Approx. 4 miles north of Jackson office of Badger Realty
Asking price for sale at $129,900 Bank owned sale at $130,900 on 10/20/2008

The best way to find foreclosed properties, foreclosure listings and bank owned property is to work with a knowledgable agent, like myself, that specializes in Foreclosure Sales, Short Sales and Bank owned property. I need to say on top of the bank owned and foreclosure listings of all my competitors in order to serve the needs of my lender-clients best. That means that the buyers that work with me often have advanced knowledge of bank owned and foreclosed listings coming on the market and also have an advantage when dealing with the forecosure listings of the other agents that get the listings in the White Mountain area.
Banks are not easy to deal with. At www.BillBarbin.com
I have been working with lenders and banks for years and I can help guide you through the difficult and sometimes frustrating process that will lead you to a purchase of the right property at a very good price. Good deals sit while Great Deals sell. MY direct # is 603-986-0385. Give me a call if you would like to work with a broker that knows bank owned foreclosyre listings and can give you the competitive edge.

Bank owned foreclosure properties for sale in Bartlett and North Conway area in New Hampshire NH

Posted at 6:29 AM, Feb. 1, 2009

Keep track of my foreclosure listings at BillBarbin.com, my personal website. Over the past 6 months there has been a sharp increase in the number of sales of foreclosed homes in the general North Conway NH and White Mountain region. We have also seen an increase in the number of new foreclosure listings for real estate for sale. However, the trend is emerging that shows that these are the homes and properties that are staying on the market for the shortest period of time. What is this trend telling us?
It is common knowledge that banks and other lenders do not want to be in the business of owning and managing properties. We also know that many of these institutions are in some form of distress due to the banking crisis and stock market problems with mortgage backed securities. What I see from this information and the actual pricing practices of the banks that list their foreclosed properties with me as bank owned foreclosure listings, is that the lenders know that good deals are not selling right now. The only properties that are really selling are the "great deals". There are buyers out in the market right now. However, these are the buyers that are looking for obvious and dramatic values. Therefore, banks and lenders that have foreclosed properties are listing these foreclosure listings for sale at "great deal" prices.
The method they use is simple: They ask someone like myself, the listing broker, for an opinion of value. Then they order an appraisal through a certified appraiser. Then they undercut those prices by about 15% and list the property for sale, usually in "as is" condition. This results, quite often, in market times under 30 days and often multiple offers, many of which are cash offers.
How does this effect the rest of us? Well, when the market is hot and an appraiser looks at a property for a bank that is offering financing to a buyer, the appraiser doesn't use bank owned or foreclosure listings or even short sales as comparable properties for the report. They look at those sales as anomalous. But when the bank owned sales get to be greater than 25% or so of the sales for a given period in a market area, the appraiser has no choice but to use those for comparison pricing. The result is that every other value is compared against the competitive pricing strategy of the bank owned properties. This means that the report may not support the buying price of a privately owned property sale. Once the banks won't lend to a certain sale price, that property's value is immediately diminished. As this trend continues, every listed property faces the same problem with appraisals. At the same time, when you have a market with an over-supply of available homes and properties for sale, the buyers themselves are comparing one house to the next. These are the people looking for obvious value to make them feel comfortable with their purchase decisions. It ends up resulting in a 2 pronged effect on the value of all the other homes on the market.
Keep track of my foreclosure listings in the North Conway NH and White Mountain Region at BillBarbin.com, my personal website.

The reality of foreclosure lists and bank owned for sale methods

Posted at 6:26 AM, Feb. 1, 2009

The following is an answer to a recent email I received from a blog reader. He had inquired about bank owned properties and i sent him a list of a mix of properties (bank owned foreclosures and privately owned) from the NNEREN mls we use as brokers in NH. He responded by saying that he didn't want mls listings but that he actually wanted the info. on foreclosures: This led me to my explanation of the methods and reasoning behind the very public approach the banks take and the information that the people that sell "Foreclosure Property Lists" do not want you to know. This is a time of opportunity and like many windows of opportunity, there are many many snake oil sales schemes that prey upon the perception that there is a secret method of advertising foreclosures that the banks employ as opposed to soliciting the highest market value they could get on the open market. The old stan-by saying of "they don't want to own property" makes us all believe that they will just give them away if only they could find a buyer. The reality is that they want the highest value they can get in the shortest period of time. Here is my response:

Hi XXXXX,

Banks actually list their properties with brokers in order to get the full exposure to the competitive market. They send their own reps to auctions to make sure they don't sell for less than a marketable value. Then they list the property with a broker, like myself, to get the property on the mls. This works well for them because their pricing strategy is to price below the appraised value so that their listings are an obvious value in comparison to the regular mls offerings. They can do this because they are just trying to mitigate losses. Private property sellers are typically trying to pay off a mortgage or maximize their profits. The banks accept that their will be a loss. They get an opinion of value from their broker, then they pay to have an appraiser give a value and then they undercut it by a margin that will make them sell fast and often in a competitive offer situation.
I think your question stems from a myth that is popularized by companies that sell lists of foreclosures and that myth is that there is some type of secondary marketplace where banks quietly stash their listings. Banks want to expose their properties to the largest number of ready, willing and able buyers. Brokers and the mls are the best source for buyers.
The secondary benefit for buyers in a foreclosure rich market is that the banks start to take control of the prices. When foreclosures sell for 10% below an appraised value every property around that sale is devalued by 10%. Then to sell a home in that area a property needs to be priced so as to be an obvious value. In other words, it has to be priced below the adjusted value. So what we are seeing now is that sellers that really want to sell need to compete with the banks' prices. This presents great deals for buyers whether the property is a foreclosure or not.
What I think you need to do is to look for a property that has what you want and then work with me to compare it to sold properties to determine the price that makes it a great deal and then you make an offer. It doesn't matter if it's a bank or a homeowner so long as you get the property for the right price.

Thanks,
Bill Barbin
Direct: 603-986-0385

Badger Realty North Conway NH
Sent from my Wireless BlackBerry Device

Vacation homes getting snatched up

Posted at 10:49 AM, Mar. 4, 2008

Want to buy a vacation home? Join the crowd. From North Conway NH to Miami FL, the second-home market is on a tear. Sales of resort condos and single-family houses around the country have been strong for the past five years, and we see no signs of slowing. Second homes in the U.S. sold for a record high median price of $162,000 last year, up 27% from 1999, according to the National Association of Realtors.

Low mortgage rates are the power behind the surge, but it's not the only fuel on the fire. A slow stock market is prompting some to grab second and even third homes. With the largest poulation segment, ever, reaching middle age, when people traditionally buy a second residence, the vacation home market continues to see steady gains. In addition, a fear of flying is prompting some who used to splurge on distant vacations to use the money for a getaway they can reach by car.

In the last 7 yrs., the hottest second-home markets are in resort areas that are a tank full of gas from big cities. They include areas like the Poconos and Catskills(N.Y.), as well as lesser-known areas like the Rangeley Lakes Region of Maine (Boston), The Outer Banks of NC (Atlanta), and New Hampshire's world famous White Mountains (Boston). Resort-home prices in these areas are up 10% to 15% in the past year, local brokers say. On the Outer Banks barrier islands, prices for beach houses in upscale towns such as Duck have jumped around 25% since last summer, thanks to an influx of buyers from the Atlanta area.

Is it too late to find a great deal? Not yet. Sure, the market is unpredictable, but with 50 million baby boomers set to retire in the next ten years, housing in destination locations will only get more expensive. Many popular resort areas have a limited amount of land available for new development, which should keep vacation home prices firm.

A second home may be especially affordable for empty nesters who have built up equity in their homes. Realtors in resort areas say many recent buyers are couples who trade down to a smaller dwelling, then use the profit to finance a vacation home where they may eventually retire. That strategy has been popular since the late 90s, when tax laws changed so that married couples no longer have to pay capital-gains tax on the first $500,000 of profit when selling their primary home.

This may be the time to act! If interest rates rise later this year, as some economists expect, second-home demand could slow. Also, vacation homes are luxury items. So pick a place you'll enjoy returning to often. Investment considerations should be secondary.

Find out which type of properties are easiest to rent or resell. On Cape Cod (Mass.), condos aren't as popular as traditional New England clapboard houses. In New Hampshire's White Mountains, Dick Badger, a real estate broker in North Conway, recommends prime properties on lakes and golf courses because they are easiest to sell.

Local realtors can help you research ways to estimate maintenance and other costs. Homeowner's insurance rates, for instance, could be stiffer if the property is more than six miles from a firehouse. You might also need to arrange for driveway plowing or to have repairs made when you're not there.

If you need rental income, take a hard look at what you can earn. In many of the hottest markets, rental rate hikes haven't kept pace with home prices. In the Outer Banks, buyers who rented out their homes during the summer used to count on annually grossing an amount equal to 10% of the purchase price, local realtors say. But with rents continuing to rise 3% to 5% annually while home prices have climbed around 15% in the past year, rental income is proportionally less. Also, count on paying 20% to 50% of rental income to a management agent who arranges rentals and maintenance.

Still, renting out a vacation home can be lucrative. Five years ago, Janice and Barry Barnes of Beverly, Mass., purchased a $158,000, two-bedroom condo in Bartlett, N.H., for family ski weekends. Three years later, they wanted more space, so they bought a three-bedroom condo in Bartlett for $189,000. Instead of selling the smaller unit, they opted to rent it out year-round, earning $13,000 last year after management fees. "It didn't pay to sell," Janice says. Another plus: The two-bedroom condo has increased in value since they bought it.

Buying a second home can be tricky. But if you're smart about it, and work with a reputable realtor like Bill Barbin at Badger Realty in North Conway NH, you'll wind up with a getaway that's also a dream investment.

Target areas in New Hampshire and Maine are: Bartlett NH, Jackson NH, North Conway NH, Chatham NH, Albany NH, Freedom NH, Tamworth NH, Ossipee NH and areas in Maine around Fryeburg, Stow, Lovell, Brownfield, Bridgton and Naples. Prime destinations are: Sebago Lake, Ossipee Lake, Kezar Lake, Crawford Notch, Pinkham Notch, Saco River, Swift River, Bearcamp River, Mirror Lake, Madison NH, Silver Lake, Eidelweiss, Chocorua, Intervale, Cranmore Mountain, Attitash, King Pine, Black Mountain, Wildcat, Kancamagus Highway and Conway Lake, to name a few.

Bill Barbin can be reached at www.billbarbin.com or at www.badgerrealty.com .

Mold issues in homes

Posted at 8:52 AM, Oct. 6, 2006

Interest only mortgages

Posted at 8:42 AM, Sep. 30, 2006

More and more home buyers are considering interest-only mortgages to get the most bang for their buck in the current low interest rate market. The loans are, however, double-edged financial swords.
First "interest-only" is a bit of a misnomer. It's not as if the loan is principal free. It's just that the loan's terms permit you to make monthly interest-only payments -- for a period. During that period, of course, the loan balance doesn't shrink.
I met one homeowner who had taken an interest only mortgage plan when he bought a lakefront home, it had a low 'fixed rate' and a low fixed payment -- it's just that the principle went up over time to support the low rate. It was a shock to him that he owed more than he had paid for the home and a good deal more than the place was worth, in today's market.
Mortgage expert Jack Guttentag, the "Mortgage Professor" says the interest-only period is typically 5 to 10 years and at the end of that period the loan converts and your monthly mortgage payment is raised to the fully-amortizing level. The new payment will be larger than it would have been if it had been fully-amortizing when you first signed for the loan. Otherwise at the end of the 5- to 10-year period the borrower can opt to refinance for a lower rate or sell the home and take on another mortgage.
Some interest-only loans never convert and, at the end of 30 years, demand a balloon payment for the principal balance.
You'll have to have the money for the larger payment or the balloon payment or be qualified to refinance the loan. If you can't hack it, you could suffer not only the loss of the property, but also a serious credit report ding. Also, your home may appreciate in value, but your equity gain will be zero during the interest-only period.
The biggest negative is that you never build equity. That's fine if there is appreciation, not so good in a down market, because the value of the note goes down if it has to be sold.
Why then, would you want to pay interest only?
An interest-only payment is less than a principal and interest payment. That gives you additional leverage to buy a larger home, or the same home with less money down or otherwise enjoy greater financial flexibility.
With the reduced monthly cash flow, if there is no prepayment penalty, you can pay extra to bring down the loan balance, while affording a more expensive home in the qualification process. For any period that you only pay interest you will, however, defeat one of the primary purposes of buying a home -- to gain wealth.
"When you pay down the balance of your mortgage, you are increasing your wealth by reducing debt. But so long as you have an interest only mortgage, you are not increasing your wealth in that way," says Guttentag.
"Of course, you may be increasing your wealth by accumulating assets instead. If you have such a plan and you have determined that it is more effective in building wealth during the interest only period than paying down mortgage debt, fine. But for most homeowners, paying down mortgage debt is the most effective way to build wealth, especially in today's financial environment," he added.
Overall it seems as though there may be circumstances that make an interest only loan attractive. The nagging problem with them is that consumers are overspending and this does nothing to stop them from getting in over their heads. If you are going to look into an interest only loan you should talk to a trusted financing pro, like Ed Harrigan at Simons and Leoni Home Loans.

The real deal on foreclosures in NH

Posted at 10:17 AM, Sep. 4, 2006

Recently, I have found myself explaining foreclosures to more potential buyers than usual. (Hang onto your seats, this is a blog of built up info..) I can see 2 reasons why this might be an increasingly attractive route to own a home. First and most obvious, there is a perception of getting a great “deal”. You know, that property that will be worth $500,000 when the market turns around in the next 6 months, but you can pick up for under $100,000 due to foreclosure today. The second reason for more interest may be that more homes are being foreclosed. Therefore there is more selection aka “supply”. This increase in interest has given rise to my inspiration for today’s entry. Let me explain some of the details about properties that are either in foreclosure or REO (Real estate owned) by a bank or lender.
A common misconception, outside of the real estate industry, is that foreclosure and an REO purchase are the same thing. Although they are similar, they are in fact different; they are related  to each other, with an REO sale being a direct result of a failed foreclosure sale. Let me try to define what each is, and their respective merits.
The term Real Estate Owned property has a specific meaning in the real estate industry; a property that has been foreclosed on by a lender and has reverted back to the ownership of the lender. So as already explained above an REO is the result of property that has been foreclosed on, and is available only as a result of a failed foreclosure sale.
What is foreclosure? What are the benefits of buying a house that has been foreclosed on and what are the reasons they fail to find a buyer?
Under the terms of foreclosure a lender repossesses the property due to the borrower’s inability to continue with payments on their loan. Typically, a lender will try to work out an arrangement with their borrower to avoid foreclosure. When there are no other options the lender will begin the foreclosure process.
Once the foreclosure notice has been issued and foreclosure has started the lender can legally sell the property; regardless of whether the borrower has vacated the property.
There are a number of conditions which must be met for a potential buyer to purchase a property at a foreclosure sale: First, the buyer has to submit a minimum bid that includes the loan balance on the property, all accrued interest on the property, attorneys fees, and all costs associated with the foreclosure process. **Note** This is a great time to reflect on the problems created by refinancing or equity lines that come close to 100% LTV (Loan to Value).
To bid at foreclosure, the buyer must also have a cashier’s check in hand for the full amount of the bid. The property is always sold in “as is” condition, complete with tenants who need evicting and any other liens secured by the property.
Because of all the difficulties and lack of concrete benefits in buying at foreclosure, most people who want to buy a foreclosed property will go through the REO route.
The REO method of purchase offers more benefits, and less risk than the foreclosure method.
When a lender takes back a property they then have the property listed for sale by a local realtor. The real estate agent provides them with a current market analysis. The role of the bank is to maximize the wealth of its shareholders. If the foreclosed property can be sold at full market value to release cash to invest, then this is the goal of the lender.
In most situations a bank will already be looking for a quick sale, and as such they will look at the price range of competing properties and price their listing in the lower 25% of that range. The lender knows that this will generate more activity and produce more offers.
Because the lender is working with a real estate agent, and is following a typical market process, a potential buyer will have access to the property for home inspections and all back taxes and liens will be paid off (clear title).
Although the benefits of an REO seem to out weigh those of a foreclosure purchase you should not take them at just face value; you should always look into exactly what you are getting and what you are liable for, should you choose to purchase a property.
In an REO sale, the bank will evict the tenants (or you could leave them there and let them pay rent), remove any liens and clear title. Most of the time however, the bank will not make any repairs to the house and will sell it to you in what is called ‘as-is’ condition: the condition the house was in when repossessed. If this is the case you should seek the services of a home inspector, to find out the condition of the property and to help you decide whether you wish to continue the transaction.
Although a bank owned property might look like a good deal on the outside, it is necessary that you do your background research on the property before you commit to any contracts. Your first priority should be to find out what the house is worth in today’s current market by having a comparative market analysis completed. It is best to arrange to work with a qualified buyer’s agent, so that the comparative data is objective. The listing agent works for the seller and is obligated to try to make you see the value in paying the most for the property. A buyer’s agent is on your side of the table.
Realistically, a lender that is trying to sell its REO property does not, necessarily, sell the property at a bargain price; such would be going against their role to maximize shareholder worth.
It is most likely that the lender will have a whole department to handle their REO transactions. On top of that, many times the board of directors will make the actual decisions regarding offers. They will do this at their monthly board meetings. What happens in real life is that an attractively priced  REO property will collect a few offers before the next board meeting and although most buyers want to get a little negotiating under their belt, at least for pride’s sake, the first offer is often the only chance. The board will select the best and strongest offer with no options for other counter-offers, most of the time.
If the bank approves your offer, then great for you! If they reject your offer and present an opportunity for counter-offers, it will most likely be motivated by strong competing offers and a desire to drive the sale price higher. In my experience, if this happens, you will have 1 last shot at the purchase. The factors that make an offer strong or weak involve inspections, time frames, financing and other contingencies and quick closing, as well as price.
Once your offer is accepted you are in an enforceable contract. It is necessary for you to take a good look at the contract beforehand and maybe have your attorney go over it with you. Once you sign it, you are liable for what it states.
You should have the house inspected by a professional inspector or specialist for your areas of concern. If you have an inspection contingency written into the agreement, you can pull out of the transaction, if the result of an inspection produces surprises or faults with which you are not comfortable. You should always remember that the lender will always want to sell the property ‘as-is’. The decision is typically, whether or not you still want to buy.
You should always consult a buyer’s agent before making your offer. When you do have a realtor working for you, you should ask him or her to find the following details about the property, before you come to a conclusion on price: Are there any inspection reports? What repair work has the bank agreed to? Is there a special "as is" form? How long will it take the bank to accept your offer? How do you deliver the offer?
Working as a team with your agent will further protect you from making uninformed decisions and will help insure that the transaction complies with local, state and federal laws. Your agent will also give you access to the specific data that will help you determine your offer price. Most of all, your agent should bring experience that will work to protect you during the search for a property, negotiations and, ultimately, the transaction closing.
North Conway and many other parts of NH, including most of the seacoast, and certainly the Ossipee Lake and other lakefront areas does not see as large a share of foreclosures as suburban/metro areas. Many properties are second homes or investment or rental properties, and are quite often paid off long ago, resulting in no mortgage. An owner with no mortgage can weather tough times better than those of us that are financed to the hilt. However, the second home market has witnessed much more attractive and aggressive financing in the last 10 years, so I think we will start to see a higher proportion of foreclosures than in the past.
In a buyer’s market, like we are seeing now, lenders and other sellers have to be more flexible. The actual potential of getting a steal with an REO is limited since they are imbedded in our local market at a fair market value, if not already slightly discounted. Therefore, I have concluded that, other than the lack of negotiating, there is no difference between these listings and any other listing that is for sale. In fact, a private seller may have personal reasons to discount the property even further (banks have deep pockets to cover carrying costs), and the private seller will, most likely, negotiate, and may respond to inspection issues more favorably.
In conclusion: Foreclosure auctions require a cash buyer with no inspections allowed and no promise of clear title. These properties may carry large mortgages but, at the least, will have the balance, interest, fees and auction costs built into their lowest “reserve” bid. REO properties are “bank” owned properties listed for sale at fair market value to maximize the return for the lender’s shareholders, with little room for negotiation. Overall it appears reasonable to conclude that no one is giving any real estate away. A smart search starts with a buyer’s agent and looks at the entire market, inclusive of REO and privately owned properties. The best “deal” is the property that suits a buyer’s needs at a price commensurate to those needs being satisfied.