buying a bank owned prop

Well, I just put an offer in on it today. I found that a lot of my initial guesses on repairs were high, like everyone said. Funny, it’s been on the market for 6 months and today, when I put my offer in, there was a competing offer. Just curious if anyone from this chat room is competing with me. Maybe I shouldn’t have given out as much info as I did.
I really hope I get this… I’m feeling good about it. Won’t know until Wednesday.

I doubt anyone here is competing with you. Did you put your bid in THEN they told you there was another bid or did they tell you FIRSt before you wrote your offer?
May jsut be a scar tatic.
Good luck and let us know how it ends

You really think they would make that up? Maybe I’m nieve- I trust my realtor. Yes, the listing agent called him a few hours before we were to make our offer and told him (my realtor) that someone else had just bid on it. I would obviously be upset if that was just a “scare tactic”, not to mention it’s illegal. Has anyone had that happen before? Well, if they accept mine, even though we went up a bit more than I planned before we knew about the other offer, I’ve done my homework and am confident it’s still a good deal.

Shannie,

I went and looked at a “Corporate owned” house today. My realtor talked with the listing agent just before she left to meet me and the listing agent claimed a “full-price, verbal offer” had been made to be followed with a contract. We’ll see if the property goes under contract or not. It needs quite a bit of work and is priced just short of retail.

Keith

Shannie,

I’ve learned to read between the lines with realtors. I’ve found that honesty is often flexible with salesmen. ( nobody get hot, there are also many good realtors ).

Realtor - I have other offers on this house that has been on the market for 5 years.

Read - someone once came by to look at the house and said they would think about it.

Realtor- The maintenance in this house is practically nonexistant.

Read- I don’t know of anything that is vitally important to fix. ( and maybe don’t want to know )

I could go on, but I am sure I have angered some Realtors already. Not all are like this, many are wonderful honest people. But trying to sell something makes for vague memories at times. I have just found that many times when I get down to the facts, I find they have been stretched a little or a lot. Take the “other offer on the table” with a grain of salt. Always be ready to walk away and call their bluff if it gets past your price range.

Luck,

DB

i just found it a bit odd that no offers in 6 months and now 2 (including yours). It got you to up you bid, didn’t it?

Even upping your bid, I’m sure you figured it is still a good deal. The waiting is the hardest part, isn’t it?

Good luck

A friend of mine was in the market for a house and the day he made his offer, he was told that another offer was made with the listing broker. Well in the end, against my advice he offered $10k over the asking price. Of course his offer was the one accepted.
Coincidence, I think not!

I buy REO’s all the time
Get comps
offer the bank 18% below their asking price

I just made an offer last Fri.
Comps: 174K
Ask: 139900
my offer: 114717 Accepted
spread: 174K-139900=59,282
Inspected the house Sat and only needs 7K repair

Most bank have a rule: if the get 82% of the listing, they take the offer. Why was the offer accepted. Well they had PMI so the bank doen’t loose anything.

note I made the offer without seeing the house. just make sure you pay the 100 for the 10 day option to inspect and back out if necessary

if offer not accepted, move on to the next deal.

mannyl2000,

Comps: 174K
Ask: 139900
my offer: 114717 Accepted
spread: 174K-139900=59,282
Inspected the house Sat and only needs 7K repair

1). Comps: 174K - Is this price from one house or the average price of serveal houses.
2). You listed spread - 174K - 139900 = 59,282. What does it exactly mean? and how important is it?
3). Does the 82% rule apply to most banks?

Thanks in advance,
JW

  1. average 174k- comps with in .5 mile. 6 houses sold in the last 3 months ranging from 162k-179k

  2. the bank is only trying to get the amount of the loan 139,900, so they don’t care about the comps. If the owner was paying PMI they will take the offer and they don’t loose anything

  3. Banks have different rules because their portafolio is diffenrent. When their inventory is high they will try to clean house.

  4. make a notation of which bank takes the low offer and continue to go back for more.

mannyl2000,
All bullet points make sense. About the 2). Did you happen to find this foreclosure property which the previous owner was paying PMI or you can do research and find it out somewhere online?
Thanks,
JW

Since time is of the essence I just make the offers. If they accept well, then I know they had PMI.

Can you guys make offers on reo properties yourself or do you have to have an agent? And if supposedly you can do it yourself can anyone get into details about submiting an offer to the bank? I know it’s a stupid question but hey, gotta start somewhere.

I let the my realtor make the offer when dealing with REO’s. Unless I’m dealing with a pre-foreclosure.

Just for the record, there really was a competing offer. I know because I was just told mine was rejected. I did want that house… back to the drawing board.

mannyl2000,

  1. why do you tackle the pre-foreclosures yourself and not through an agent?

  2. do you use the same formula (the 82%, etc.) with pre-foreclosures?

thanks for your valuable advice.

shawn.

Would you bring Sand to the Beach?

Why bring a agent to a pre-foreclosures just someone to pay to do nothing!

Agent will slow me down and most of the time they don’t understand what we investors do.
I can do all the steps of the pre-foreclosure in 3-4 days. Sometimes even less