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Ive put in full price offers on 4 reo homes and i didn't get one of them. is my realtor doing something wrong? i have 770 fico score, and $60,000 for down payment on$ 270,000 properties, why wouldn't I get the home. I am also one of the first bidders??? is it hard to get reo properties, or have i just been unlucky or do i have a bad realtor? Thanks!
Are you pre approved for a mortgage?
Are you offering to close quickly?
Are you writing As-Is offers?
Are you aware if there are other offers at the time you are making yours?
Many REO properties are listed very low to get multiple and quick offers. I just closed on one yesterday where we had to go 10K over list price to get it as there were three other offers.
I always go back and check on properties my client's didn't get that we bid on. Most sell for more than asking price, at least in my neck of the woods, if it's in good shape.
I have done four successful contracts on REO properties. One went for under the asking price...and that was in October. Since then, in my area, many of the REO's are listed at a lower price than what is actually accepted. As dlh said, the trend here appears to be price low, generate immediate interest and then watch the bids come in. One of the properties generated 14 bids at once, with over 1/2 of them coming in over asking price. The bank then threw them all out, made it a cash only with no inspections offering. It was quite annoying to say the least and I now am very leery of anything listed by that Realtor®. So, if your Realtor® is doing anything wrong, it's that she(he) is not keeping track of the trend. Other than that, probably not. You need to keep in mind..the bank is a reseller. Their going for the most they can get generally. And all banks are different as to what motivates them to take an offer.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Show me a real estate agent that has any control over a bank asset manager, and I'll show you someone who is possibly related to that asset manager or is blackmailing them.
Banks live in their own world and to the extent they have exposure to REo property dictates a lot of what they do. Ultimately they have to report to the comptroller of currency (and their shareholders) for their actions.
Agents are a part of the process only because of the geographic distance between the bank and the property. If banks ever figure out how to sell REO property themselves, they will.
What's your financing like? Are you asking for any seller's concessions? The banks want the cleanest, easiest deals they can find. We put in an offer above full price for our clients on one the first part of May. They want to move in mid June and we just talked to the listing agent late last week and he said we're 90% there. Their funding is completely uncomplicated, they want no concessions and they're 100% pre-qualified. Like Menscha says, banks live in an alternate universe. There is no rushing them. They make up their minds in their own sweet time. It has no bearing that you're one of the first to make the offer - the listing agent will send them over in the order they were received, but the banks look at the ones they like best. If they get an ALL cash offer as offer #23 at or above full price, they're going to take that every time. Make sense? They are not your typical seller with emotional ties to the home. They are trying to get non performing assets off of their balance sheets.
I'm having the same bad luck with REO's... each time we've been outbidded by "All Cash Offers" ... I mean these homes are 400k and up.... in this economy how are these people able to put all cash offers? Any clues? Perhaps investors?
I'm having the same bad luck with REO's... each time we've been outbidded by "All Cash Offers" ... I mean these homes are 400k and up.... in this economy how are these people able to put all cash offers? Any clues? Perhaps investors?
I don't know if anyone else has experienced this, but in the past I have gone against what I call professional buyers of these REOs. Some of the buyers have organizations/investors with cash out the wazoo that can come in an plunk it down to buy these homes. Purely for investment reasons. Don 't know if they (here in my area) are still doing this or not.
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