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Why bother with REO's?

By
Real Estate Agent with RE/MAX Premier Associates

What is the use of showing REO's? BY the time you place an offer after it is listed they always have 10-15 offers. Your client gets excited and they even bid higher than asking price but don't get the property anyways.

Buyer's now want to deal directly with the REO listing agent because they feel they have a much better shot at getting the home. I think there are some real ethical questions concerning inside information on REO properties.

I have found it a lot better to deal with a regular listing and negotiate them down close to the price of a foreclosure. Those homes are in much better shape anyways and makes for a much smoother sale.

For example a 3/2 REO single family home gets listed for 210K, they receive multiple offers and it ends p selling for 235K. Why not find the same home which is a regular sale for 260K and negotiate them down close to 235K?  Even if you spend a few extra bucks, almost always the home is in much better shape.

Chaz

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Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

I thought we were bad here with 304 offers.  The Short Sales are clogging up the pipeline (not moving).

Nov 10, 2009 12:44 AM
Eddie Arnold
Real Living HER - Canal Winchester, OH

I also see a lot of this with REO properties.  On my end it is usually the really nice ones that I deal with the multiple offers.  Also in my area they are delayed on getting Deeds recorded so if we do get an accepted offer on an REO a lot of times it takes extremly long to close. 

Nov 10, 2009 12:47 AM