A strong offer from a committed buyer...that's what the asset managers want.

By
Real Estate Agent with ReMax Gold 01501948

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)

Comments (3)

Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

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.

Aug 02, 2009 07:03 AM
Lori Prizmich
ReMax Gold - Davis, CA

Hi Troy - Thanks for the comment and you are absolutely right.  I work with buyers and REO listings and it can be maddening. 

Some companies asset managers choose their own pricing regardless of what the listing agent recommends.  Frankly, I agree the prices are often times way to low.  It ends up attracting buyers who push themselves beyond their limits and also sets up false expectations for buyers.

Listing agents should confirm receipt of offers.  If they don't though sometimes it is because the offer actually didn't go through or was illegible. 

Repairs can be tricky.  I've had companies perform repairs and/or allow buyers to perform repairs prior to COE.  It does complicate things though.  It's a tricky time now, isn't it? 

 

Aug 02, 2009 07:49 AM
Carol Lee
Dilbeck Real Estate - Oak Park, CA
Realtor - Agoura, Oak Park, Westlake CA Homes

Hi Lori- good points.  as far as underpriced listings, I often have to tell my buyers that they cannot get the home at the price listed,  It is frustrating for them, and sometimes they still want to write.  I could have said a lot of "told you so's" this year!

 I have a buyer in escrow on an REO condo now.  When we first saw the home, carpet was soaked, fans were running, and it stank.  They still wanted it and wrote a strong offer.  After much prompting, the listing agent stated that the leak was repaired, and sent the receipt, which I forwarded to my buyers.  Their inspector feels there is another leak or something going on behind the walls, but the asset manager will not address this, nor will the asset manager allow us to even make a small hole to look.  I cannot even advose them on this. other to say if you are not comfortable, cancel the contract and I will find them something else.  Though good homes in their price are hard to find and sell quickly!

Aug 07, 2009 06:41 AM