I've been working with buyers of reos. For the past few months, I can never seem to get my ALL cash, full price offers accepted. So I searched the listing agents mls history and it seems as though a lot of them pocket listed. I can't blame them for trying to double end. But I felt bad for my clients not getting the properties they wanted. I tried telling them to go with the listing agent so there chances would be greater. But instead, they encouraged me to get the listings. So here I am, searching everyday to find seminars or some sort of trainings on Reo. I came across this site and have been reading your discussions. I thought all of you guys are wonderful and so helpful. I'm thinking of getting the reorenegade package. But I thought I'd ask my mentors first. So do you guys have any suggestions?
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I have have been in many REO multiple offer situations. The owner( bank) does not always pick the highest offer. Secondly...it it the owners decision not the listing agents.. all we can do is guide them and make suggestions. There is alot of variables the bank will consider... preapproval.. what type of proof of funds, close dates... (the list goes on and on).. It is very challenging being in multiple offer situations
I just made an all cash offer for 40K over asking to close in 14 days and had it rejected by the bank. There were ten offers on the property. Made another offer on an REO and it already had four offers by the 2nd day. I don't it was so much pocket listings as it is apparent supply and demand at least here in my area.
Always get a receipt from the listing broker that your offer was received and a signed rejection from the seller. We send a receipt to every agent that sends us an offer that includes notice if all of the seller's requirements for offer submission were met (POF, copy of EMD, etc...). If an offer is not accepted by the seller, we also send a signed rejection of offer. That way, there is a paper trail showing when offers are received and submitted and the response. Rarely does one of my seller clients not want to know about EVERY offer that comes in, regardless of the status of a previous offer. They ALWAYS want to know there is a backup waiting in case the one they accepted falls apart. As far as getting listings, before you spend any money of on any course, I strongly suggest you buy lunch for a couple of the established REO brokers in your area and talk with them. Listing REOs is very different from representing buyers on REO purchaces and you want all the info you can get before you invest your $$$$. My advice to agents wanting to start in REOs is always to find an established REO broker, beg them to take you on and teach you the business and save your money. If you do not have about $50,000 for property preservation expenses that you cannot afford to wait up to 90 or 120 days to be reimbursed for, then it will be very difficult for you. Do not spend a penny on a "How To" course yet, just talk with a broker who has been doing this for a while.
Are the other properties selling for more than full price, or less than your offer?
Are you getting your offer in within hours of it hitting the MLS?
REO companies mostly require MLS sheets to be returned within 24 hours of sending the listing. It makes it tough to pocket list, but not impossible.
You might just have had a run of bad luck.
If I were you, I'd get my best buyers ready to go in case of a hot deal. Pre-signed purchase agreement, proof of funds, copy of EMD check in my file, Written permission to submit offers on their behalf, and send out an offer contingent on inspection within hours of a hot property hitting the market. Then I'd run the buyer through.
If you're still not getting them, I'd agree with you that you have an unethical agent on your hands.
Checked the sold MLS on Jeremy Colonna listings, the one I offered list price was $282,900. My client offered cash, $280k, 15 day escrow. The sold listing showed $273K cash, sold by Laurel Colonna. It closed within 11days.
Do you guys think the 4 days earlier makes a bigger difference on my offer?
Dalida, in my neck of the woods (scenic New Hampshire) it is not unusual for a full price, cash offer not to win out and it has nothing to do with pocket listings. We are routinely experiencing multiple offer situations on our REOs and it is not at all unusual for people to offer considerably over asking price. Have you tracked some of the properties you've lost out on to see what they ultimately sold for? One of the other things I've noticed is that many of the AMs don't seem to particularly care whether a buyer is paying cash or financing - their attitude is..."it's all cash in the end". I don't particularly agree with that attitude since I believe lack of attention to the type of financing is why so many of our REOs end up back on the market but, unfortunately, I seem to be in the minority.
With regard to "double ending", I agree with Steve...it's just wrong.
Joy, I agree with the multiple cash offers. Just last week we lost out on another great deal. We even offer $10K above listing and I heard someone offered $90K above listing. I'm not mad at that one though because I don't think that was a pocket listing. I'm only mad at agents who pocket list. But oh well, Life goes on. Hopefully those agents run out of clients with money soon. I can get a chance.
You might consider joining a team or brokerage that has REO listings. In our market we are experiencing multiple offers on most REO listings and it's hard to get our buyers offer accepted. However, if you have a relationship with an REO agent or if you work with someone that has REO listings it will improve the chances of getting your offers accepted. It's not fair but that's how is playing out. You might also want to post a discussion asking how agents are getting their offers accepted. Remember to be specific with your question on the discussion.
Have not used the REORenegade package. However, if you post your discussion differently you will get some folks who probably have. Most of the REOPro members are very busy and just look at the blog and discussion titles. Perhaps something along the lines of "Has Anyone Used REO Renegade package?" as a discussion title might get you more replies. Hope this helps.
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Are you getting your offer in within hours of it hitting the MLS?
REO companies mostly require MLS sheets to be returned within 24 hours of sending the listing. It makes it tough to pocket list, but not impossible.
You might just have had a run of bad luck.
If I were you, I'd get my best buyers ready to go in case of a hot deal. Pre-signed purchase agreement, proof of funds, copy of EMD check in my file, Written permission to submit offers on their behalf, and send out an offer contingent on inspection within hours of a hot property hitting the market. Then I'd run the buyer through.
If you're still not getting them, I'd agree with you that you have an unethical agent on your hands.
Do you guys think the 4 days earlier makes a bigger difference on my offer?
As far as what to do, I'm stumped. I'm going to have to think about that one.
With regard to "double ending", I agree with Steve...it's just wrong.
You might consider joining a team or brokerage that has REO listings. In our market we are experiencing multiple offers on most REO listings and it's hard to get our buyers offer accepted. However, if you have a relationship with an REO agent or if you work with someone that has REO listings it will improve the chances of getting your offers accepted. It's not fair but that's how is playing out. You might also want to post a discussion asking how agents are getting their offers accepted. Remember to be specific with your question on the discussion.
Have not used the REORenegade package. However, if you post your discussion differently you will get some folks who probably have. Most of the REOPro members are very busy and just look at the blog and discussion titles. Perhaps something along the lines of "Has Anyone Used REO Renegade package?" as a discussion title might get you more replies. Hope this helps.
Carlos
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