The REO (real estate owned) foreclosed home market is hot right now in the Prescott area with many homes priced under an already depressed market price.When banks price REOs under the market price, multiple offers are often the response. This means buyers can be up against stiff competition for that bank-owned home.It’s not unusual for some bargain-priced REO homes in the Prescott area to receive 3 or 5 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called “Highest and Final” offer. Sometimes the bank simply accepts the best offer at inception, or they can start over. Fun isn’t it?If you’re wondering how you can make your offer rise above all the rest and be the winning offer, here are the top 10 tips to win the REO multiple offer game with right packaging, price, terms and conditions:1. Know What the Bank Note Is For and What they PaidAsk your foreclosure buyer’s agent to find out the bank’s purchase price on the Trustee’s Deed. Compare that price to the price the bank is asking. Then, look at the amount of loans that were once secured to the property. Usually, the amount the bank will accept is somewhere between the original mortgage balance(s) and the foreclosure sale price. BUT, don’t put TOO much emphasis on these numbers when they are low. It a property is worth $300,000 and the bank is holding a note for only $100,000, they are not going to take $100k for it. They not not against making a profit on the rare occasion when they are not upside down. They’ll likely hold out until a reasonable offer appears.2. Know the Comparable Sales DataMake sure you know what properties have been selling for in the immediate area, both REO and traditional sales. The bank already got this data when they received their Broker Price Opinion (BPO) to determine the listing price and might have another BPO once the offers were reviewed. If the comparable sales for REOs has been $120/sqft in the neighborhood and you are offering $90/sqft, you can expect a counter at best and most likely will never hear back from the bank.3. Do an Analysis of the Listing Agent’s REO Pricing RecordMost REO agents focus as listing agents for REOs, and often they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings. Have your foreclosure buyer’s agent pull the history of the listing agent’s listings to determine the list-price to sales-price ratio. If most of those listings are selling for, say, 5% under list price, then you will have some guidance as to how much you need to offer.4. Know your Competition - Ask About the Number of OffersIf there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you may need to offer above the asking price. If there are 10 offers, bear in mind that some of those offers might be all cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to be considered.5. Prepare an Offer Summary as a Cover SheetThis is aimed at simplifying the process for the Asset Manager, who, will more often than not, have 400 - 500 properties under management and often in multiple states with vastly different real estate contracts. This cover sheet will have the basics only (Price, Terms, Concessions, Closing dates, etc.).See a sample cover sheet. If you are an agent and want one emailed to you in Word format, just contact me.6. Choose a Closing Date Before the End of the MonthTry to have close of escrow on or before the 25th of the month. Banks are assessed their handling charges on the first and if they have not received the check before the end of the month then there is an additional charge for them.7. Submit Your Loan Status Report or Proof of Funds with your OfferIt goes without saying that you do not want to submit an offer without showing the REO manager that you have the means to purchase the home. If you are getting a loan, then it’s of paramount importance to submit the Loan Status Report (LSR) with your offer. If you are paying cash, you need to show proof of funds. Often buyers submit copies of money market account or bank statements (with the account numbers obscured) to show that they are capable of completing the purchase.8. Give Enough Time for the Bank to RespondUnlike homeowners who are typically working on one transaction at a time and can respond within 24 or 48 hours, REO asset managers usually hundreds of homes they are trying to dispose of. And since many of these are getting multiple offers, the amount of workload can be be overwhelming. This is why we suggest allowing 7 - 10 days as the response time on offers. Sometimes responses will come much quicker, but other times even longer. Manage your own expectations for response as well and make sure your agent is following up.Don’t take it personally when you don’t hear back…it’s not personal, it’s business!9. Don’t Try to Choose your own Title CompanyChoosing the escrow company who will help close the transaction is normally the buyer’s decision, but when buying a bank-owned home, buyers need to be flexible. One of the items that your buyer will need to be flexible about is that the bank will, more than likely, want to choose the title and escrow companies. This is due to the fact that they have significant amounts of title work done during the foreclosure process so they usually want to stay with that title company. Please be aware that many of the escrow and title companies that banks choose to use are not local, and that they are usually low bidders who are overwhelmed by transactions as well. They will have traveling notary services or local options for document signing, but don’t expect the same service you get from your favorite escrow officer. If you are an agent, take an active role in trying to help the title company get the contacts they need locally, like the HOA information, etc.10. Shorten the Inspection Period and Don’t Ask for Repairs at the Offer StageIf other buyers are asking for 15 days to conduct inspections, and you ask for 10, you will be deemed the more serious buyer. Banks, just like traditional sellers, don’t like the “Free Look” that the Arizona contract offers buyers during the inspection period. If your agent can’t make everything happen within 10 days, (home inspection, termite inspection, special inspections) ask why not. Sometimes banks will pay for repairs, but typically will not agree to do so at the offer stage. If there are serious problems are found during a home inspection, try to renegotiate after your offer has been accepted. Banks are much more likely to offer concessions once your offer is in the hopper, especially if the repairs are required as a loan condition.Bonus Tip: Offer to Split Transfer Fees if You Ask for Any Concessions at AllAs a rule, banks do not like to pay transfer fees, but if the buyer offers to split those fees, the bank will feel more amenable to accepting the offer. We suggest offering 50-50 splits on all transfer fees and do not ask for further concessions like seller paying buyer’s escrow costs, etc.Keep all of these tips in mind when you are making offers and you will experience far less frustration and and much more success when trying to buy bank-owned properties in the Prescott area.Bonus Tip #2: Write your contract in English and not legalese.Forget what the last CE instructor taught you at your renewal hours, and go back to writing the contract in plain English.Want to see an example of how not to write a contract?Read more…
I have many clients who call me looking for deals on short sales and foreclosed homes in the Prescott Arizona area market including Precott Valley, Chino Valley and Dewey-Humboldt. Many think that short sales are better deals than foreclosures, but his is rarely the case.What the difference?The short sale process has many moving parts that must be aligned in order for the sale to close. First of all, the lenders have to agree to a short sale, but sometimes banks won’t agree to a short sale without an offer. This means that the home has been listing for a price that the bank hasn’t agreed to, and once the offer comes in, the bank will assign a loss mitigator to review the process. This could take several months and most likely will involve a counter offer by the bank close to the loan amount…regardless of whether or not the loan has any bearing on market value. Then the games begin.When you buy a foreclosure in the Prescott area, the process is much more straightforward and the prices are set by the bank and not a by the homeowner and REALTOR, who have nothing to lose by listing it below market value. In fact, it stimulates demand and clients for the listing agent and the homeowner thinks there is progress because people are looking at their home and making offers.That’s not to say that all short sales are not good buys. The key to success is being prepared and having a full understanding of the process.For links to more information, see my Prescott AZ Area Foreclosures BlogRead more…
Everyone knows REO properties can be purchased at discounted rates and that they are great investments. What not many know is that high end homes are even better bargains and in most cases can be purchased at even bigger discounts than your typical REO property. It is not uncommon, in our market, to purchase a property valued at $2million for $1 million. Here are some of the reasons why that market offers great deals:1. Fewer buyers in this market.2. Misconception jumbo financing is not readily available.3. Most buyers focus on properties which can be purchased with conforming loans.4. Misconceptions there is no REO inventory in the high end market.We just found out there is a major financial institution offering jumbo loans for buyers with 720+ FICO scores with 20% down and excellent interest rates. Furthermore, as more foreing investors enter the US distressed markets the high end inventory will probably be their primary investment choice. This would be a great time to invest in a second home, move up or simply invest an excellent tangible asset.
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It's been a while since my last blog post - too long! It's not because I'm lazy, it's because of my crushing workload. My team has been expanding to keep up with it all, but even so, I find myself at least as busy as ever, and possibly even more so.I wanted to share with you all my view of where we are headed for the rest of the year. There's a lot of talk about bail-outs and hitting the bottom and market rebounds, and there's also a lot of talk about falling off the economic cliff, outright economic depression, etc. I want to chime in with my own $0.02 - and that's probably about all its worth, but this community is about sharing, so here goes.I do think that the bail-outs are going to help stabilize the credit markets. To be honest, I have not seen a lot of qualified buyers having problems with their loans. People who have good credit scores, good incomes, and good debt-to-income ratios have been getting loans this whole time. People with dicey credit and iffy income have had a much harder time of it - which actually makes sense. A lot of these people maybe should not be buying real estate - unfortunately, that's a big chunk of the adult population, and there's a lot of real estate that needs to get bought, so it's understandable that the powers that be would want to put the credit into their hands to buy these properties.As for Obama's Homeowner Rescue Plan - in my market (northern California), there are precious few people who are going to qualify for this plan. Even nationally, where many more people will be able to take advantage of it, many people simply won't - I believe this epidemic of rational default (or ruthless default as some would say) will continue un-abated. I do think that the Homeowner Rescue Plan will in fact save some homes - and in large part, probably only those of the "most worthy" - that is, the people who are least likely to be back in default shortly after rescue.I think it's a good thing that the government get actively involved in trying to put Humpty Dumpty back together again. I am sure they're bungling the job and that somehow, it could be done much better and cheaper - but I think a large part of the problem is lack of confidence in the system - and if the government shows confidence that it can take steps to fix the system, that will go a long way towards restoring stability and calm.Having said that, I'll say this: I think the bottom is a ways off yet. For my business, 2008 was an extremely busy year - and I expect that 2009 will be busier. I expect there will be more foreclosures in 2009 than there were in 2008, despite the government's valiant efforts. And that is as it should be. There are simply too many homes in the houses of people who cannot afford them. Much better in the long run to move these properties from weak ownership to strong ownership.I also foresee the foreclosures moving up the economic ladder - increasingly, more and more middle, upper-middle, and executive/luxury homes are going to be foreclosed on. You see, in a normal economic cycle, first you have a recession, then you have increasing mortgage delinquencies, defaults, and foreclosures, accompanied by a drop in real estate values.This time around, we had a drop in real estate values, brought on by a "credit crisis" (or, the end of ultra-lax lending practices), followed by an increase in delinquencies - and then, recession. In a normal cycle, we would just now be at the beginning of a surge in foreclosures, not nearing the end of of one. Think we've hit the bottom? Think again.You do see, hear, and read news stories about positive signs that we may be approaching a bottom. I'm pretty sure, though, that I've been hearing those stories for quite some time now, at least a year - and the bottom seems no closer today than it was a year ago. And let's not forget the shadow inventory - it's real, it's big, and it's out there, waiting. I am getting listings that have been secured and vacant for months, never listed, never assigned to an agent - they've been sitting, for months, just rotting and dropping in value with the market around them.In short, I expect it will be another banner year for those of us in the REO Brokerage business. I'd be curious to hear how 2009 is shaping up in your market.
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Don't know if I made a mistake. I did a bpo for this company a few weeks ago and they just sent me an email accepting applications for REO broker network as their listings are increasing.Has anyone had experience with this good or bad with this company? Asset Management Servicing.
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Hi! Just wanted everyone to know that asset managers are looking here, and I just finished the initial bpo for a national vendor who, not finding an agent in my area, plucked me off this site. Way to go! This site is getting notice in its first year, gotta love it!
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Posted by Anton Stetner on February 22, 2009 at 6:19pm
We have been steadily growing our REO business this year and I am looking to expand it more. So my question is this is NationalForeclosures.com LLC - worth the money?Any thought would be helpful.Thanks,Anton
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I'm currently looking for a movtivated buyer's agent that can work a growing terriroty in Stockton & Lodi. If you know of anyone looking to get there feet wet in the REO business representing buyers, assisting with MSR and Prop Mgmt, send them my way.Sincerely,Jonathan BurgessReal Estate BrokerNFSTI./REO-BPO CertifiedYou can send an email to: offer@code3realty.comProspects with relationships within the public safety professions are highly desirable!!!
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Ok, not sure who mentioned ASREOS to me but, I was intrigued none the less and that prompted me to investigate them just a wee bit. Here is what I know.
Founder Frank Patrick also founded REO Res Q, REO Renegades and American Society of REO Specialist.
To join ASREOS it cost (per their website) ….(https://members.asreos.com/public/5.cfm)
Property Preservation Monthly ($99.97)
REO Broker/Agents Silver Monthly ($99.97)
REO Broker/Agents Gold Coaching Monthly ($239.97)
REO Broker/Agents Gold + Membership ($539.97)
REO Broker/Agents Platinum Monthly ($997.97)
By the way, i wasn't able to find any information on subscription levels and what they get you, go figure?
From 100.00 to 1000.00 dollars a month…..ARE THEY SERIOUS?
On their website, they answer the following question……
1. Do you assign REO listings?
No, but we help you get more REO listings of your own by providing access to our nationwide network of REO Sellers who are consistently acquiring new foreclosure properties - and Master Contractors who need to prepare those properties for market. Those contacts are invaluable when it comes to growing your ongoing REO business.ASREOS.com also provides crucial inside information as to how to make effective contact that counts with assets managers in charge of assigning REO listings. And, by becoming part of the ASREOS Online Directory of REO agents/brokers and property preservation contractors, your status will get a big boost in the REO industry overall.
Pay special attention to that first line….NO
Does anyone have any experience with these guys that they would like to elaborate on?
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Heard this morning from a very reliable source that REO assignments are going to double for the 2nd quarter (Apr/May) of the year. Also, we should be seeing even more investment, foreign and domestic, in tangible assets such as real estate due to the oversupply of money and lack of confidence in financial markets. Would not be surprised if we see a shortage of inventory towards the end of the year. Especially since the latest policy of rental leases in lieu of foreclosure, recent short sale appeal and more foreign and local real estate investment due to oversupply of money.
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Here is a post from one of my AR collegues I thought it was worth sharing:Has Fannie Mae pulled their head out of their... sand box?What if I told you Fannie Mae is offering special financing if you buy one of their bank owned homes? Would you believe me? Well you should because it is true!Why does this benefit you? Well frankly... the terms of their offered financing is pretty darn sweet!The benefits of their HomePath program include:Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)You may qualify even if your credit is less than perfectAvailable to both owner occupiers and investorsDown payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employerNo mortgage insuranceNo appraisal feesFREE home warranty is included with the purchase.I recently wrote a blog about another local Sacramento Agency that is offering a similar incentive if you buy one of their bank owned homes. Read the blog now >>BUT the catch is they only have 2 or so homes available in the Sacramento Area to purchase.Here is the best part about this program... There are over 250 homes available in the Sacramento area right now that qualify for this program!Here are some other homes available in the Sacramento Area:Elk Grove... 46 homes available!Citrus Heights... 21 homes availableRancho Cordova... 16 homes available!Fair Oaks... 4 homes availableCarnichael... 14 homes available!and so on...Here is some more specific information about their guidelines:97% (3% down) for owner occupied financing with NO MORTGAGE INSURANCE!Why is this such a big deal?A typical FHA loan with an equivalent down payment (3.5% down) would require 1.75% of the loan amount to be paid upfront for a mortgage insurance premium. Then on top of your monthly payment (PITI), you would be charged .55% (of the loan amount) every year for ongoing mortgage insurance.Let me break this down so I don't throw too much loan lingo your way.. Here is an example mortgage insurance fees for an FHA loan of $200,000...$200,000 x 1.75 = $3500 You would be charged this amount at closing or you could roll this into a loan on a traditional FHA loan program for the upfront mortgage insurance premium.$200,000 x .55 / 12 months = $91.67 This means $91.67 would be added to your payment every month for mortgage insurance.With this special financing offered by Fannie Mae you could put .5% LESS down than a FHA loan and you do no pay ANY MORTGAGE INSURANCE! This really is a sweet deal!Do you feel like a little more sugar today? Wait until you see what they will do for an investor!90% (10% down) for non owner occupied properties with NO MORTGAGE INSURANCE!If you are looking for an investment home in Sacramento, you know that you will get a better return on your investment if you have less money in the deal. Right now with typical financing (actually offered by Fannie Mae for non-Fannie Mae owned homes), you should expect to put down at least 25%.Wow! So for example if you purchased a home for $150,000 (not owned by Fannie Mae), you would need to put down $37,500 plus closing costs. If you buy a home owned by Fannie Mae, you only have to put $15,000 plus closing costs. If that does not help you"sharpen your pencil" I am not sure what will! This is a really big deal!They even offer a renovation program that allows you to finance light renovations upfront and add it to the loan amount. So if you find a Sacramento Fannie Mae owned home that maybe has some vandalism issues (which many do), you can probably get a discount for the home and finance in the repairs that are needed to bring it back to livable condition!It is so nice to be able to report some good news to folks. It really has been a drag having to shovel through the bad news to try and find something good to report as far as guideline changes go!Here is a link to search for homes in your area >>We can offer this special loan program... so just give us a call and we can discuss this opportunity further!Happy Hunting!This blog by:Team NewingtonSacramento Mortgage Planners(916) 687-6868www.SuperiorLoanTeam.comRead more…
Posted by MIRELA MONTE on February 4, 2009 at 2:15pm
Asking price: $167,432 on a Bank Owned property in an oceanfront building where similar listings are still priced at over $200K. My investor client asked me to put in a bid for $125,000. The bank approved it. SOLD!Asking price on a short sale: $190,000 in an Oceanfront building where similar condos are still listed for up to $300,000. My investor bid $154,000 for it. The bank finally accepted $168,000. We closed last week.I just received a request to bid on a short sale home currently priced at $549,900, the least expensive home ever sold in that neighborhood. The lead came from Active Rain. The investor wants to bid $260,000. Will I write it up? You bet! Why? Because the bank might actually take it!Here are some deals you could bid on: Luxury condo on Waterway. Asking price $299,900.Waterway community custom home, 4BR/3BA. Originally priced at $799K. The bank now owns it and listed it with me for $489K.Just check out our website for current REO deals at: http://www.myrtlebeachhomes.us/Homes or www.BankOwnedInMyrtleBeach.comGo ahead: insult the Seller! I will be glad to do it for you!Mirela Monte, Your Myrtle Beach REO Source
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Alright, so, I sent out that pesky little Survey a couple of weeks ago and, as you know, I have made some changes accordingly.
One of which is the weekly broadcast message briefing you on some of the weeks activities. I just started that last Friday and the response was good. So, I will continue to send it out each Friday. Of course, if you don’t want to get these messages you can control the messages you receive from by clicking the bottom of the message that says, “Control the messages you receive”
Another change was the search by State. Don’t forget, to set this up, you need to go into the Profile section of your settings and type in your state where it says, “enter your state”. Remember to include abbreviations because some people may only search by such. For example I typed in Tennessee, TN, Tenn.
Now, we have had a lot of request for advertising…..granted I was a bit surprised when 2 un-solicited request came in. Once I was aware of the need, I went ahead and put out on the home page that if anyone was interested in advertising to contact me. Well, I was a bit overwhelmed by the response and therefore, am bringing on a friend of mine to get the banner advertisements up and running. I have already seen the prelim ad’s and I am sure you will be impressed. I hope to have those up soon.
Now back to the survey, ok, I heard you, you want REO listings….well, ok, let me pull those out of thin air for ya, just kidding.
On a more serious note, let me explain to you what I am up against when I tell these banks, asset managers and lenders that I have a great pool of REO Professional Agents that would love to do business with them. They say, “how do we know they are really any good?” Well, ok, I get it, they need to know you can sell REO and do it well before they want to deal with you so…..um…..here is my thoughts.
The money I raise from the advertisements will go right back into REOPro and start a “Certification” training program. Now, the best part, I plan on not charging for it. That’s right, a free REO Certification plan that actually will benefits it’s graduates with REO listings and BPO Opportunities.
I know…..ground breaking, right!?!? My plan is to raise the funds from the advertising so, I don’t have to charge Realtors a fee for the Certification. Now, I have heard a lot of concerns from others I have shared this plan with. One argument is that, if I don’t charge for the Certification, then people won’t take it very seriously and, I truly understand that but, my argument is, the training program is going to be so intense, that only really good agents will be able to obtain it. What are your thoughts?
Now, as for this Certification program, it will take a while to get up and running, I suspect 6-9 months but, in the mean time, I am working on getting some banks or at least an anonymous Asset Manager to come on and write a “Dear Abby” article once a week. This was a great suggestion from someone who responded to my recent survey and, I think I may have just the right Asset Manager. Hopefully this will give some invaluable insight as to what they are looking for and how to get more listings.
Well, anyways, I got to run but, I wanted to give each of you a heads up as to what is coming down the pike. I look forward to each of you being successful and I hope I can be a part of it. Thanks for your continued support and, lets make REOPro a REO Power House!
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Posted by Suzan Nasr on January 21, 2009 at 5:25pm
While we've been seeing our share of REO's throughout South County, to date the number of foreclosures and short sales in Coastal Communities has been very low. Popoular coastal towns such as Laguna Beach, Monarch Beach/Dana Point and Newport Coast for the most part have not been affected much. Ofcourse it remains to be seen what the trend will be in 2009. Once in a while when an REO doest hit the market in one of these communities, it's typicaly sold right away. A 2 bedroom condo in Monarch Beach is still in the mid to high $300k range while in Laguna Niguel you can pick a 2 bedroom in the low $200k range! Yet you are only a few miles from the ocean.www.PacificBankerRealty.comRead more…
I have noticed that most REO/Bank closings for Floridaare using title companies in South Florida and charge double or triple the customary charges.I am looking for a list of REO closing departments that we can contact to infrom them of our prices and services.Any advice or direction would be appreciatedBarry MillerThe Closing Agent, Inc.Barry@theclosingagent.com
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So you want to be an REO agent do you? Unless your just slammed with business and don't need or want anymore, why would you not answer your telephone. Two days ago I spoke with an AM that had 6 properties needing to be assigned all of which were outside of my coverage area exept for one. So being the sharing person that I am, I called & called & called. 3 listings went to my Southern CA friends/agents with Code 3. 1 to an Agent in Beverly Hills , 1 to myself and the Other to a MEGA REO broker in Bakersfield. This REO broker pretty much assured me he will be retiring after this boom, of which is his 3rd and he's doing MAJOR volume. HE DIDN'T KNOW MY NUMBER FROM NEXT BUT CERTAINLY ANSWERED HIS PHONE AT 10AM IN T THE MORNING WHEN I CALLED. So why is it that a Broker Doing Mega business can answer his phone, and some of us wanting to get into the business don't answer or at least return a telephone call. I'm sure we all have caller Id & show missed calls on our cell phones. We'll I'm looking for a network of a few good agents in CA that I can count on to answer there telephones next time I am blessed with the opportunity to pass on a REO listing.I have been informed from my contacts that CA is gonna get slammed in the next 6-9 months and I'm sure these opportunites will be more common. So Answer your telephones, I know most of my AM's call me before they assign a listing to give me a heads up. I haven't missed a call from one yet, so I don't know what happens when they don't get you on the phone. I would like to think that after you prove yourself they will just assign it; however sometimes a conversation is worthy. Lots of times there in other States Like PA and don't know Sacramento is 4-5 hours away from Bakersfield.Here's my tip for the month: I spoke with the REO coordinator for Citi & have been informed they will be adding new agents in or near the 1st quarter of 2009. So you may want to get your packets in if you haven't already done so. (So why would they be adding more agents around this time, well the stars are linning up, just another source confirming the volume and outlook ahead.)
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My fellow agents, Time has come for us to recognize the battle that has been waged on us. Battle, we didn’t ask for, Battle, we did nothing to deserve, yet it is here and the battle we must fight not only for us and our future but also for our clients.REOPROs that have been around for a while know what I speak of. A Few months ago, I started to see some articles from auctioneers in reo magazines (DSNEWS), active advertisements by more and more companies, blog posts, and active memberships on most platforms used by lenders to hire agents to sell assets. Today, I hear from my AM friend with major bank, telling me that direct approach like never before to the entire REO division of most major banks is under way. You wouldn't believe how many companies are jumping on this bandwagon. This ghost has come out of its dark corners and if we don’t prepare ourselves for it. I dare not say the words what I fear.In my experience and with some feed back from some AMs, auctions have very little effect. If these companies advertise thousands of listings they only sell hundreds that day and many are at the fire sale prices. At that time the bank gives in and accepts a price that was well below the reserve price. What’s' worse is that this listing was with an agent before. It was cancelled only 30 days after it was listed. Oh by the way, the agent in this case got this listing after nasty eviction, got the property in marketable condition with shelling out his own money, waiting to be reimbursed. This type of process hurts.I am deeply troubled to hear these auction companies bash brokers and say auctions are the way of the future. I am confident after what they charge (10%), and prices they sell asset for, they even come close to what we can get for the asset if proper marketing time would be given. I am anxious to hear from everybody reading this blog if auctioneers net more than we do. If we do then why more and more listings are being taken away from agents and some sold at the auctions at the fire sale prices. This is crazy.We the Professional REO Agents do more each and everyday from occupancy check to evictions to weekly reports to maintenance to negotiate sale for less than any entity on this earth. We protect that asset as it was ours. I now make a point to tell this to all my AM contacts. I believe it’s in their interest to know that we do more for less and get them the best deal possible.
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Offers on REO’s should be Last, Final and Best!
I get more complaints from prospective buyers about their offers because they didn’t get the opportunity to counter. No matter how up front I can be about the offer process it seems to never get through that most times, banks aren’t going to counter, they are simply going to accepting the best offer and, that may not be yours.
What really hammers my patience is when I get a call from a buyer’s agent that goes something like this…..
Buyers Agent: Hi my name is Joe Super Realtor and I am calling to follow up on an offer we placed on 1313 Money Pitt Lane?
Me: Hi Joe, thanks for the call, give me just a sec to find the file (brief pause) ok, it says here the bank accepted another offer.
Buyers Agent: Um…we didn’t even get countered, shouldn’t we have received a counter?
Me: No Joe, as stated in the MLS, “all offer should be Final and Best” this particular bank isn’t going to counter.
Buyer Agents: Well, I didn’t see that so, how can I submit in my client’s counter?
Me: Joe, that isn’t how this works, the bank has moved on and the bidding process is over.
Buyers Agent: Can you explain this to my client, he is here with me now, I just don’t understand, how much was the other offer?
Me: I am not going to go into details about another person’s offer however, it really doesn’t matter at this time, your client lost the bid by not following the instructions as outlined in the MLS.
Buyers Agent: I don’t understand why the bank wouldn’t look at our offer when it’s more than what they accepted?
Me: Ok, this isn’t going anywhere, was there anything else I can help you with?
Buyers Agent: Can I speak with the bank, do you have a number I can reach them at?
Me: No, I don’t have a number you can reach them at.
Buyers Agent: How do you contact them, they have to have a number right?
Me: Let me be more specific, No, I don’t have a number that is published. I can’t provide you with their contact information.
Buyers Agent: Well, whatever…….this is awful and I can’t believe your bank would do this to my buyer. We are going to find another house and steer clear of these REO’s.
Me: Ok, well thanks for calling and have a great day!
BUYER AGENTS, FOLLOW THE MLS AND EDUCATE YOUR CLIENT. IF YOU DON’T KNOW THE PROCESS OR HAVE QUESTIONS, CALL ME BEFORE YOU PUT IN YOUR OFFER NOT AFTER!
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I am not very good at this, but here it goes anyways. Went to the REOMAC conference in Hollywood last week. What a great experience. It was everything I expected and much more. Met lots of nice people and learned a lot from the pros. I am not a member and unfortunately they are not accepting new members at this time, but I would love to become one whenever is possible, its a great organization. I went with another agent friend who is also an REO agent. Since we are in Miami, we just drove there everyday, only about 45 minutes. They had an exhibition hall and we had the chance to personally meet reps from some of the companies that we deal with, from preservation companies to asset managers. The last day we had a brokers only session where we met with some of the most experienced and successful REO agents nationwide and they answered questions and gave advice. Also the last day we attended lender roundtables and were able to interact with them. There was a friendly atmosfere, the food was good, it was just a great experience overall, can't wait for the next one.
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