I showed a bank owned yesterday at $398k, a good sale comp sold for $400k. The reo is on the lake w/3 car garage but needs some updating, nothing major. The good sale was turn key, 2cg, on a larger lot (I know lake is worth more). Shouldn't the REO be lower?

That is a difficult question to answer without knowing the area or seeing the property. It also depends on who the seller is. We have a couple who consistantly overprice and are slow to bring them down. Others put it at the highest they can justify with the 2 BPOs and appraisal but will drop it if there is no interest. I watch showing data for ours. No showings = price too high. Since you showed it I would assume it is in the general range pricewise for the area.

The sellers are looking to get as close to fair market value as possible. Just because it is an REO does not mean they are going to knock 20% off from comperable sales in the area just to move it quickly.

Thanks for the input. This is what I was looking for....