""Freddie Mac"":http://www.freddiemac.com says its REO homes sell for an average of 94 percent of market value.
According to ""a blog post"":http://www.freddiemac.com/news/blog/tracy_mooney/ by Tracy Hagen Mooney, SVP of single-family servicing and REO for the GSE, because Freddie Mac-owned homes Ã¢â‚¬Å“are well maintained and priced right for the local market,Ã¢â‚¬Â most sell close to full estimated market value.
Freddie Mac sold more than 80,000 single-family REO homes in the first nine months of 2011, which the company says is a record. According to the McLean, Virginia-based GSE, it is selling more homes than itÃ¢â‚¬â„¢s taking in through foreclosure.
Ã¢â‚¬Å“Although Freddie Mac's inventory of foreclosed homes has been falling and represents only a small share of all [REO] [COLUMN_BREAK]
properties, we understand the negative impact these homes can have on neighborhoods and communities,Ã¢â‚¬Â Hagen Mooney said. Ã¢â‚¬Å“That's why our policies and programs are designed to maintain home values, reduce losses, and stabilize communities.Ã¢â‚¬Â
Hagen Mooney points out that more than 70 percent of Freddie MacÃ¢â‚¬â„¢s REOs are sold to owner-occupants.
She says while the GSE has always been open to selling to investors, the companyÃ¢â‚¬â„¢s strategy is to limit the concentration of investor sales in any given area. She adds that Freddie Mac typically doesnÃ¢â‚¬â„¢t consider any offers that require significant discount pricing.
Hagen Mooney also highlights the companyÃ¢â‚¬â„¢s ""Good Neighbor"" property preservation and maintenance best practices, which are designed to ensure that buyers purchase Freddie Mac homes in move-in condition, and that property values are maintained for neighborhoods.
The GSEÃ¢â‚¬â„¢s Ã¢â‚¬Å“Good NeighborÃ¢â‚¬Â policies mandate that within three business days of a confirmed vacancy, each home is secured, preserved, and cleaned. The companyÃ¢â‚¬â„¢s contractors then continue to monitor and look after the home until it's sold, including maintaining the landscaping.
Freddie MacÃ¢â‚¬â„¢s sales cycle for its REO homes is about 120 days, which the company attributes in part to its Ã¢â‚¬Å“top-performing broker network.Ã¢â‚¬Â