Many of the new Santa Barbara area listings that come on the market every week are foreclosures (or REOs). In recent years, home buyers have become more aware that buying an REO property, while not always the most simple transaction, can be a good way to get a great value. Especially since REOs are often not in pristine or “move-in ready” condition, the first question on most home buyers’ minds is, “How much less than the asking price can I buy this home for?”
Since this question comes up so frequently, lets look at the research, which is surprising. Of all the homes sold through the Santa Barbara local Multiple Listing Service (MLS) between Carpinteria, CA and Goleta, CA, 229 homes have been sold as REOs. Although foreclosures are generally thought of as small, run down houses, they can actually be any type, size or condition of property, which is reflected in their price. These 229 listings sold for anywhere from $65,000 for a 2 bedroom/2 bathroom mobile home to $4,200,000 for a 4 bedroom/5 bathroom estate.
Out of all the foreclosures, the best discount received was about 26% off of the original asking price. On the other hand, another home sold for 121% of the original asking price. There are many factors that determine the final price, but one that is not always a good indicator is actually the original price. For example, the mobile home mentioned above was originally listed for $69,000; thus, it sold for about 94% of the original price. The estate that sold for $4.2 million originally came on at $4.9 million; this represents a 86% sale to list price ratio.
So those are the extremes, but let’s look at the averages. With 229 listings in our sample size, the general belief is that Santa Barbara REOs usually sell for below an already discounted asking price. However, the data shows that the average for all the listings in our sample is 99% of the listing price. So now we know that the average foreclosure will sell for almost exactly what the original list price is.
Another factor people often look at is the number of days a home has been on the market. It is true that the REO’s that sell quickly tend to be the more desirable, nearly always have multiple offers, and often sell for more than the asking price. In the sample data, over half of the 70 homes that were on the market less than two weeks went above the asking price. At the other end, however, every one of the 74 homes that were on the market for more than 60 days went for below asking price.
So there you have it. If you are looking to buy a foreclosure in order to get a bargain, and you want a sure thing, look at the ones that have been on the market the longest.
Do you have specific questions about foreclosures or short sales? Contact Daniel Zia and the Zia Group team by email (Daniel@ZiaGroup.com), phone (805-637-7148), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Santa Barbara MLS and set up a customized email-based home search for you to track foreclosures and other homes in Santa Barbara for sale at your leisure. Thank you for visiting the Santa Barbara Real Estate blog and we look forward to serving you and your real estate needs.
This rarely available Santa Barbara “Hidden Retreat” on a private lane in the desirable Mountain View school district just came on the market. As a 4 bedroom, 3 full bathroom this Goleta vacation home captures lots of natural light through an abundance of large windows, glass doors and skylights throughout. Among the home’s professionally designed landscaping is a beautiful courtyard style front entrance with paver path, specimen plants, fruit trees and a tranquil fountain. Additional interlocking paver paths connect the different landscaped areas and each offers low-maintenance natural beauty, different temperatures (sun vs. shade) and options for enjoyment.
Inside, buyers will find a sizable 2,315 square feet of living space, including a stunning kitchen remodel with custom cherry cabinets by Santori with built-in pantry and pull-outs, recessed lighting, a large skylight, Corian counters and high-end appliances. A full list of the extensive upgrades is available upon request.
Daniel Zia and The Zia Group are available to provide further details about this property or exclusive showings to interested Goleta home buyers. Here are over 20 additional photos and a detailed floor plan (under the “documents” tab): http://www.flexmls.com/link.html?rjlq1rxyprg,1,1. Check back later this week for an exclusive video walk through of the property on the Santa Barbara Real Estate Blog by Daniel Zia.
The Seller will be reviewing offers on Monday, July 12th at 5:00pm, so make sure to request the full listing details from The Zia Group. For additional information on Santa Barbara real estate, visit the Zia Group’s comprehensive Santa Barbara website, complete with a free Santa Barbara and Goleta MLS search tool, Santa Barbara neighborhood histories and more.
I’ve got the inside scoop on an upcoming Santa Barbara REO on the lower Eastside/Lower Riviera. Supposedly it’s a 2/2 Spanish revival that will come on the market next week probably in the mid $300k’s range. It should be an excellent price as there are homes in the area on the market for $500-900k.
If you would like more information, or may want to take a sneak preview, contact your Santa Barbara Realtor, Daniel Zia at 805-637-7148 or Daniel@ZiaGroup.com
Here is the “inside scoop” on an Upper Riviera view home that will be coming on the market in a couple of weeks–be the first to know…
Spectacular, unobstructed, panoramic ocean, island, harbor, city light views from this single-level, 3BR/2.5BA, 1731 sq. ft. home. Soaring, open wood beam ceilings in every room but one. Now being painted. New maple hardwood flooring (5″ planks) to be installed by the end of next week, then staging and into the Santa Barbara MLS. I can probably show it before then. This should be the lowest priced Upper Riviera home currently on the market at $1,150,000. It is a trust sale; no court confirmation required.
If you would like more information, contact your Santa Barbara Real Estate Expert, Daniel Zia at 805-637-7148 or Daniel@ZiaGroup.com for a private showing.