San Jose REO or Bank Owned Home – South 33rd

vbrasil — Tue, 05 May 2009 04:50:33 +0000

154 S 33RD ST., SAN JOSE

Status: Sold
ML Number: 80903799
Parcel Number: 481-16-013
ZIP: 95116
Area: 4 Alum Rock
City: San Jose
City Limits: False
County: SANTA CLARA COUNTY
Thomas Br Map: pg. 834 (F4)
Cross Street: E San Fernando
Unincorporated: False
Beds: 2
Baths: 2
Stories: 1

Class: Single Family Residential
Type: Detached Single Family
List Price: $237,900
Original Price: $244,900
List Date: 1/23/2009
DOM: 53
CDOM: 53
Lot Size (Acres): 0.123
Lot Size: 5360.00 SF
SqFt (source): 924 (Assessor)
Age: 84
Year Built: 1925
Zoning: R18
School District: San Jose Unified

Remark:

This was quite an interesting home. Much like other homes in the area there have been a number of modifications with out permits. This is very problematic when using an FHA loan for the purchase of the property. In this case the buyer was attempting to use the City of San Jose First Time Home Buyer Program the Welcome Home Program. Unfortunately the Welcome Home Program has tough requirements regarding properties and a number of low priced REO’s may not qualify.

We were fortunate enough to negotiate a low price of $237,000 with 3% back for buyers Non Reoccuring Closing Costs. After we had property inspections and there was about $7,000 of Section one we negotiated another $7,000 off the purchase price. We closed in a month and a half for $230,000.

Experience in Buying an REO in Santa Clara & San Jose

vbrasil — Fri, 06 Feb 2009 15:18:12 +0000

This week I submitted two offers for REO properties for two separate clients. One was a single family 3 bedroom 2 bath home in Santa Clara that was listed at $400,000. The home was in poor condition but the price reflected it. My experience with REOs (bank owned properties) is that they are seldom i good condition, so a little extra work was no big deal for my client.

We submitted an offer at $407,000 and there were 4 other offers at that time. In this Santa Clara neighborhood alone there were 3 other bank owned properties on the market, the next lowest in price was $461,000 and needed just about the same amount of work.

The response from the seller was a highest and best counter in the form of an email. For those of you who are unfamiliar with this strategy, the seller comes back to all the interested parties and asks them to submit their highest and best offer. We responded knowing that this home was under priced and offered $420,000 as our highest and best. That was 3 days ago and are still waiting for a response from the bank.

The other property was in the San Jose East Valley. A 3 bedroom two bath home listed at $225,000. There are a number of REOs (bank owned homes) in this part of San Jose. Most need quite a bit of repair and have unpermitted additions, converted garages and all sorts of code violations. A unique characteristic about this San Jose REO is that it only had a garage conversion that could easily be converted back. Other than the garage conversion the home was very close to move in ready and was certainly the best home in that area of San Jose for the price.

This San Jose REO received a total of12 offers. We are currently awaiting response from the bank. This experience is very common as active buyers in Santa Clara County that are targeting these REO deals have slim pickings for homes that do not require too much repair. As a result, they often get quite a bit of interest when priced low and will often sell at market prices. This is not to discourage you from trying, rather to set your expectations on pursuing REOs.

Santa Clara Valley REO » san jose reo

San Jose REO or Bank Owned Home – South 33rd

Experience in Buying an REO in Santa Clara & San Jose