I know it is frustrating to show buyers dozens of homes, write dozens of offers, and not get into contract. Agents might even resort to submitting offers on homes their clients haven't seen or submit offers on multiple properties at the same time.
Last week I had an REO listing in which the bank responded to the first choice offer only to have the buyers agent say their clients were no longer interested (it was a quick response by the way). That was fine. However, when we responded to choice #2, #3, and #4 who said the same thing...it was a little suspicious. We finally got into contract on the 5th choice offer!
Probably common sense, but here are some tips for submitting offers on REOs.
1) If the property is listed way below market and your client wants the property, don't be afraid to submit an aggressive offer (other agents are).
2) It can be helpful to include any compelling information that might influence the asset manager (ie: buyers credit, assets, job history, familiarity with subject area...whatever you can think of).
3) Ask the listing agent to confirm receipt of the offer. If you don't get confirmation call or email. I have received offers that were so faint I couldn't read anything including the agent's name and phone number!
4) Include a lender letter with the loan officers name, phone number, and email address.
5) If your buyer is an FHA buyer, make sure and take the condition of the property into consideration. If the property is going to need repairs to pass FHA, the listing agent probably knows it. Address repair issues in the offer.
6) Assure the listing agent that this is the property your clients want. The goal of the listing agent is to find the best offer that is most likely to close escrow.
Hope this helps!
Lori Prizmich, CRS
Realtor, Keller Williams Realty
530 845 3325 (direct)
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Lori - Great advice for buyers agents. How about some for the listing agents? Don't list the property way below market price if you want higher offers. Also, have the listing agent confirm receipt of all offers without having to request a confirmation by the buyers.
As far as repairs to a REO - We have never been successful in getting the repairs done by the listing agent/asset manager, as REO's are typically purchased "As Is". It becomes a real point of contention when the buyer can't fix something in order for the home inspector to test, and the bank won't fix the problem either. In that situation, the buyer doesn't even have an opportunity to know what they are buying and what the cost of repairs might/could be.