REO properties that are listed on MLS - Posted by Mike Flewelling


#1

Posted by Redline on October 29, 1998 at 09:34:00:

SCook85: Excellent advice.

How do you finance these REO’s? It sounds like you flip them - which is where I’d like to be however I do not have all cash to purchase them. What’s the best route?

Thanks,
RL


#2

REO properties that are listed on MLS - Posted by Mike Flewelling

Posted by Mike Flewelling on October 26, 1998 at 16:48:54:

I target REO properties that are listed on MLS. When I make offers on these properties, I use my buyer’s broker to submit the written offers to them. Invariably, (at least 50% of the time, the listing agent calls back my broker and claims to have better verbal offers on the property than mine, and would I like to raise my offer. My response to these so far has been to have my broker advise them that if they have a better deal that I will leave my offer on the table pending the outcome of the other offer(s). I think if I raised my offer, if they in fact did have another buyer (which most of the time I doubt they do) they would just call them up and try to have a bidding war on the property.

I wish these people would just counter.

Is there a better way to handle this?


#3

Re: REO properties that are listed on MLS - Posted by SCook85

Posted by SCook85 on October 26, 1998 at 22:49:46:

This is my specialty. I do this all the time.

First of all. An agent can not tell you or anybody for that matter if there is a higher offer on the table. It is illegal. They can not discuss the amount of offers that have been presented. The way it is usually handled is they say that they have a number of offers and they want everyone to submit there best offer becuase they are getting ready to make a decision. I rarely budge from my original offer. They usually don’t make a decision. When it comes to banks you can put deadlines to accept your offers all you want, they just ignore them. A lot of my offers get accepted over 30 days after I made the offer. That is fine because they have been my best deals. You just have to play there game. Make lots of offers, you won’t get them all and don’t counter. (when I do counter I raise my offer by a $1000 never more).

Keep making offers. Don’t worry if you don’t get one. If it is still available 30 days from now, submit your offer again. Maybe for less than the first one. It works try it.


#4

Re: REO properties that are listed on MLS - Posted by Gary

Posted by Gary on October 26, 1998 at 21:54:05:

Mike,

An REO property that is listed with a Broker does not always mean that you can get a good deal. My office has one currently listed that is about $20,000 over true market value. It was appriaised at a value that would hold true if the property was updated. It takes the bank at least one week to reply to a written offer and they had turned down many good offers. The agent that has it listed would rather let some one else handle it. Banks can be extremely difficult to work with. Your agent must submit your written offer no matter what your offer is. Verbal offers mean nothing.
I can verbally give you an offer for one million dollars on a $20,000 property. If it’s not in writing,
it does not exsist.


#5

Re: REO properties that are listed on MLS - Posted by PBoone

Posted by PBoone on October 26, 1998 at 19:54:28:

We hear the same statement many times. We always place an acceptance period until either 8:00am or 6:00 pm depending when the offer is presented approx 12hrs. If the seller recieves a higher offer duing that time it is in thier best interest to accept the higher offer because ours already takes into account what we are willing to pay.
I never get into realtor manipulation.
Pat


#6

Re: REO properties that are listed on MLS - Posted by Rob FL

Posted by Rob FL on October 26, 1998 at 19:25:20:

Tell the seller’s agent that you are considering several different properties and for them to just submit your written offer to the bank. Tell them you will be glad to consider a counter-offer, but they must hurry as you are looking at several properties. Also remind the seller’s agent that by law they have to submit all offers.

my .02


#7

Re: REO properties that are listed on MLS - Posted by Jimbob

Posted by Jimbob on October 26, 1998 at 17:01:26:

Mike,

This could go either way, the agent wants to bump the sales price because he gets more commission, then again, he may have a legitimate higher offer. The thing you should remember is that you are making offers within your comfort zone, don’t let someone take you out of that comfort zone because then you’ll make what could be a costly mistake. Almost everyone who buys property in an auction situation ends up getting creamed on the purchase price. As long as you’re being realistic and not insulting on your purchase offers, you should be fine.

One way to make the listing broker either $%#@ or get off the pot is to make your purchase offer good for say 48-72 hours, and if they get a better offer, fine, move onto the next one, or they can counter on paper. As far as verbal offers from other buyers? They’re as good as the paper they’re written on.

One thing to note, in hot selling areas, shorten the time for acceptance on your purchase offers, in my area, I have made it 12 hours in some cases!

Jimbob