Out of the 426 Medford homes for sale right now, 64 (about 15%) are Medford REOs or Medford foreclosures. Yet when you look at the number of Medford homes that have sold in the last 3 months, 33% have been REOs! It won’t come as much of a shock that Medford REOs sell faster than otherwise comparable Medford homes because they are priced lower. Banks do not want to be in the real estate business, and they want to get non-performing assets off of their books as quickly as is practical. Although they want the best price, their first goal is to sell, so if an REO doesn’t sell in a reasonable amount of time at housing market value, they will lower the price until it does sell. Of course, those lower selling prices affect the overall Medford housing market, driving down housing market value.
So, if you need to sell your Medford home now, how can you compete I this housing market? Competing with banks on price is much harder for individual homeowners, who often depend on sales proceeds to be able to afford their next home. If you can afford to wait, the obvious answer is to wait for the number of foreclosures to go down, and for the Medford housing market to improve. If you cannot afford to wait, then you must rely on a combination of other advantages. The condition of your Medford home can be an advantage over REOs, which have often been neglected. Whatever you can do to improve your home’s appearance, including cleaning, decluttering, painting, minor repairs, and sprucing up landscaping will help. You should also make sure your Medford home is easy for realtors to show, even on short notice. Offering to help with buyer closing costs can be a major advantage. Banks are often less flexible with terms, and paying closing costs can make the difference for many otherwise qualified buyers who are short on cash. The way you market your home can also provide an advantage over REOs. If you are working with a realtor, make sure he or she has a plan for marketing your home effectively.
Finally, you still must be priced within the current range of Medford housing market values. That does not mean that you have to be priced better than similar REOs, but if only 4 homes similar to yours have sold in the last 6 months, your home should be priced pretty close to the 4 lowest priced similar homes on the market right now.