Hello to eveyone reading this post, I have questions about expired MLS Listings. I have read that appraisers and real estate agents have access to these listings. I would like for an real estate agents, investors, or appraisers to answer my questions.
How much should the investor offer the real estate agent or appraiser for these listings?
Are there any programs, websites or individuals that can provide these expired listings for a reasonable fee?
What type of sellers or properties can the investor expect to find on the expired listings?
Can the investor expect to find REO’s on an expired MLS listing?
Thank you for the information Fadiz. I have some questions about about finding an REO on the expired MLS listing. I will appreciate your feedback to make sure that I am on the right track.
If there is no listing agent that is representing the property on the bank’s behalf (because the listing is expired), I will have to contact the loss mitigation or REO department of the bank directly.
Are there more obstacles in conducting negotiations with the bank directly because the property is not listed with an agent?
Due to the REO being on the MLS expired listing, have you discovered that it is easier to negotiate price terms with the lender on these properties?
I never contacted a lender directly, so I cannot answer your questions. I assume, and this is only an assumption, is that the lender will quickly relist the property because they need to get rid of it so if you want to go that route, you need to be quick to contact them. The main obstacleI see is getting through to their REO depertment.
hopefully someone with more experience can directly answer your question.
In general, most REO properties in the area that I work in are generally listed with a Real Estate Broker. For the most part those relationships have been formed with the Broker for some time. Lenders do not like working on REO properties. If they had it thier way they would work out a payment plan with the former Owner so that they would not be in the position of selling it. To work with a Real Estate Broker allieviates alot of thier frustration and allows them to demand more from the Broker than they themselves would be willing to give.
In regards to expired listings, for the most part thier are very few listings that do not sell because of Broker incompetence (other than Brokers in ability to take listing at a marketable price ) In general there are 3 factors that determine the sellability of a home. They are : Price, Price, and Price.
Any home priced right will sell regardless of Location, Condition,Terms, or any other number of reasons that someone may give you.
To address your question on obstacles negotiating directly with the bank… In my experience, and generally speaking, banks are stupid. Many times, they want full retail for a house that is distressed (REO) and not in tip-top shape. I do not actively go after REOs for this reason. Unless a REAL REO deal lands in my lap, REOs is not my bag. So, whether it is directly with a bank or through realtors, REOs are generally not part of my game - YMMV.
There are exceptions to the rule. I have found that smaller banks, community banks, etc., will work with the buying public directly much more so than the juggernaut banks. I think the difference is that community banks are just that - they are in the community, they know the area, and therefore are less dependent on finding a proxy (a realtor) to disposition the property for them.
Thanks for the information Turborocket. In my investing strategy to find REO’s, I will start to speak to the Loss Mitigation Department of the small, community based banks to find better deals. Successful investing.