Generally speaking, a homeowner, especially in this market, has seen the value of their home drop, which I think can make it harder to emotionally let go of a home. If I paid $150,000 for a home 2 years ago and today you’re telling me I MAY be able to get $100,000 for the home, that’s a tough pill to swallow. Whereas a REO, (Real Estate Owned or foreclosure) asset manager is just looking at trying to move the home off their books.

When this current cycle started, homeowners were more willing to offer incentives to help move a home, ie paying closings costs or buying down the rate, where the REO homes were unwilling to do so.

Today, the REO asset managers are willing to particpate in helping borrowers with their closing costs so that competative advantage has swung away from the homeowners.

And we could start a whole new stream talking about the challenges then of getting a home to appraise in today’s market.

Evan, you bring good content and value to your community trying to help educate everyone to the market as it is today. Keep up the outstanding work

Thanks for your comment. I don’t think you and I are far off on this one. What you mention is one of the many frustrations our clients deal with.

My point about banks not having emotions is that they are not tied to their “asset” in the same way that many homeowners are tied to their “homes.” That is not to say that everything they do is logical.

Not by a long shot.

Still, I think the primary reason their foreclosures sell over the competition is their willingness to price where the market is. Do you agree?