Foreclosure in Regatta Riverview hits the market at $110K less than last asking price

Written by Michael DiMella | Oct 7, 2009 4:00:00 AM

Banks all work differently when trying to sell their REO (bank-owned foreclosures) property, but they all have the same end goal: To sell the property quickly and try to get the best price they can. Like normal sellers, banks are not just going to give away money, they need to recoup their costs as well. That being said, when they bring a property to market, it is often after many months of holding and maintaining the property through the foreclosure process so they often prefer to get the property sold very quickly - which is why many foreclosures sell for a discounted price and can present opportunities to savvy buyers.

As an example of a foreclosure in the Boston area being listed at a discount to the market, we are just about to list a bank owned property at the Regatta Riverview Residences in Cambridge that literally has had a $110,000 price drop! It was last listed pre-foreclosure for $539,000 and the bank just gave us their new listing price of $430,000. Whatever the motivation is for them to get this property off their balance sheet, apparently the bank truly wants to "unload" this condo.

Although there have been a handful, we don't see a lot of foreclosures in high rise or full service buildings like this (most foreclosures in the Boston area are in neighborhoods concentrated with multifamily homes). In this case, Regatta Riverview offers a concierge, movie room, office room, pool, gym, and valet parking - definitely full service. The condo itself is a 1040 square foot corner unit which includes two large bedrooms, two sizable bathrooms, and a renovated kitchen w/breakfast bar. One valet parking spot is also included.

All other two bedrooms currently listed in building range from $499K-700K, so there's probably some solid value here.

There are certainly some issues to be aware of when making an offer on a bank owned foreclosure, generally speaking the process works similar to a typical sale process. Negotiating with a bank can be a little more cut and dry than with an individual owner and foreclosures are sold "as-is" so don't expect to get any repair work (if needed) done by a bank. It also can take a bit longer to get an answer to your offer - they work banker's hours, after all!

We're finalizing some of the marketing collateral and details but in the meantime, to inquire about this property or discuss the foreclosure purchase process in general please contact Todd Mikelonis at 857-383-3125.

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