I find many a Realtor/Agent, after they've done their due diligence or contingencies for physical inspections, will come back with this long list of items and a huge dollar amount for a total. Now many an REO NEED a ton of work!! However, the Lender is NOT selling you a new home! Some Realtor/Agents come back insisting on new roofs, remodeled kitchens, bathrooms, residing, new flooring, windows,appliances, the whole enchilada!!
I suspect many do this as a strategy as many a Realtor/Agent who lists REO properties do not convey the "bad" news to the lender in fear of loosing the listing. Kinda like when you presented an offer in the old days and took your market analysis to SHOW the Seller just in case the "listing agent" hadn't done that! Always pissed me off when they did that!
The lenders don't like big numbers without very specific line-item costs! They may be totally aware of the properties condition (belive you me--I tell them and show them with tons of photos!) but need specific numbes in which to show THEIR supervisor. They like "menu's" in which to justify to THEIR boss WHY they would be willing to credit a certain dollar amount. So next time you get an offer accepted come back with a "line-item" list of repairs in "menu" form which the Lender can refer. You're far more likely to get what you want at that time. Remember, if you are the lucky "winner" of a multiple offer property be careful coming back with a huge laundry list. The "assett managers" are more than willing to tell you to stick it and go back to the 7 other offers for a better deal.
That's your REO tip of the day! And don't forget to listen to the "Real Estate Hour", www.KSRO, Sundays, 9 to 10AM PST or tune-in at http://MikesRealEstateShow.com and listen there!
