Do you really save when you buy an REO?

by ritasimpson on October 25, 2011

in Latest News

We all love a bargain, and God knows I have scavenged over the years for great buys. So what do you think is happening with the Malibu beach properties? any great buys  out there? you bet! but sometimes it takes a while for them to get picked up.

Of the 24 beach sales this year so far only  3 have been of foreclosed properties.That is 12%. One of these was at the Encinal Bluffs. It had been purchased for $18 million a couple of years back to only find a buyer earlier this year at $7,750,000! Then we had the sale on Sea level. This was  a gorgeous architectural home by David Gray which sold for $5,350,000 after lingering for a couple of years starting at $13 million. But these are the exceptions and they experienced the stagnation because they were still riding the illusion of the hay day prices…on average beach properties in Malibu have performed very well compared to the other categories with an average sold price of a little over 88% of list.  Malibu Road and the Colony , Point Dume Bluffs and La Costa Beach have registered good solid numbers. The interesting revelation when one looks at all the sales and pull out the statistics since 2005 is that you find that the average price per square foot has not changed that much. For example in 2005 we had 68 beach sales during the same period from January to October the median for a beach house then was $5,272,000 and the average per square foot paid was $1,683. This year we had 24 beach sales with a median price of $3,245,000 and an average price per square foot of $1,726. It seems that People  who are moving toward the beach are willing to pay a very similar price per square foot  and willing to go small.

The condominium market is another story. In this category of the 41 sales so far this year 16 were foreclosed properties, that is 40%! and here when you compare the price per square foot paid in 2005 $695 to the current price of $396 per square foot you start to see the opportunity!

As to the single family homes on the hill sides of Malibu 18 of the 104 sales so far have been of foreclosed properties,  about 18%. Here the shift is a little more visible and dramatic that with the beach homes: the price per square foot paid for the foreclosed properties was $494 while for the standard sales the average was $649. This most likely is a reflection on the state of the property and all the repairs it might need, however another interesting note is that in 2005 the average price paid per square foot for this category was $686 per square foot, not much lower than what is being paid today!

The well advised buyer, might want to see all options and do some homework. Sometimes it pays to buy a foreclosed home and sometimes it doesn’t!

Here are the Bank Owned properties in Malibu currently listed for Sale:

Sorry, but we couldn't find any results in the MLS that match the specified search criteria.

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Post by Rita Simpson

Rita has written 468 articles.



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