Stop Wasting Your Time Placing Bizzare Low-ball Offers On REO's...

Real estate owned or REO's are properties owned by lenders, usually banks, after unsuccessful sales at foreclosure auctions. Many of the bank REO properties are generally in poor condition and need repairs and maintenance, both to satisfy property upkeep laws and to preserve and prepare the property for sale on the open market. Many REO properties on the open market will eventually be listed by real estate brokers hired by these lenders.

Banks owe their shareholders and investors a duty to get as much as they can for these properties. Just because you see it's on the market and listed as a short sale or a foreclosure doesn't mean they're going to give it to you for a fraction of its worth.

The bank's goal is to get a purchase price as close as possible to the home's fair market value, as determined by the recent sales prices of similar, nearby homes, with some adjustments made for the property's condition. Fact is that almost all banks would rather reduce the price by a moderate amount, and wait to see what offers come in, than to accept an offer 30-40 percent below the asking price just because there are no other offers on the table.

Avoid the drama by working with your agent to make a realistic offer, based on recent comparable sales in the neighborhood adjusted for the actual condition of the property, and not just on what you think you can get away with. You can waste a lot of time, spin a lot of wheels and lose out on a lot of properties making low-ball offer after low-ball offer on distressed homes. Sit down with your agent, review the "comps" and make a smart offer that reflects a good value for you, is within your budget and is not bizarrely out of the realm of the fair market value of the property.

 

Phyllis Lerner, Realtor

Broker / Owner

http://westchester-real-estate.us
914-438-7556

Voted 2010 FIVE STAR Real Estate Agent by Westchester Magazine