If you are considering trying to purchase a bank-owned property (AKA, REO in industry vernacular) without using a Buyer's Representative in order to try to save a few bucks, READ THE BLOG BELOW from a Realtor colleague of mine in Las Vegas Nevada.
Consider this a fair warning to REALLY consider the risk/reward and decide accordingly!
Can you write an offer on a Las Vegas REO home for sale without an agent? Absolutely YES!
If your logic is to get something for “6% off” because you feel that is what we make – you are absolutely mistaken! First of all commissions are not “set”. Most REO agents only make 1-2% of the closed purchase price on the listing side. Coops for the buyer’s agent’s side average between 2-4%. SO if the bank allows you to represent yourself on an REO home purchase (with no agent involved) – you are really only going to save 2-4%
What are some the tricks to getting an “accepted” offer on aLas Vegas REO home for sale? You will need to check in with the listing agent to find out some particulars:
- What type of paperwork do they want? Typical is proof of funds, maybe a notarized NRS 113 waiver, etc.
- How many offers are on the property?
- Is there a mandatory minimum MLS marketing time?
- How do you want the offer submitted? It is usually via fax, website (popular for HUD homes,) or email.
Once you hash out those particulars so you can put a solid offer together you need to figure out the most important part: PRICING! DO NOT (I repeat) DO NOT rely on AVMs (automated valuation models) online because they are NOT entirely accurate! If you do not have MLS access, you will need to hire an appraiser for your pricing comparables. Your goal with pricing is that you do not want to pay too little (and possibly lose the home to another offer) and you do not want to pay too much!
Good luck in your quest on playing in the wonderful world of REO!