I am interested in purchasing an REO that has been on market for almost 12 months – and within the past four months a local realtor company has listed it.
However, is it common to bypass the realtor & go straight to the bank & negotiate. In my previous discussions with the Realtor, she has been very dishonest about the property (not realizing I am privaledged to inside information etc.)
Therefore, should I (can I) bypass the current agency listing this REO & go straight to the bank & negotiate. It has been sitting there for a while & I would assume that this is prime time to go in with an offer … The bank is asking MV for a house that needs some work done.
If a Realtor has it listed they usually have the exclusive right to sell the property and you must go thru them or your agent. If the listing has expired then you are free to go directly to the bank. If you call the bank they can tell you who has it listed if at all. A lot of banks have web sites and list the property for sale and which agent is handling the sale. Most banks hate dealing with REO sales and want Realtors to be the go between.
Good luck trying to find the account manager for a specific home. I have tried to in the past and it takes a whole lot of resources to do so. I am a realtor and have various ways to do this but it is difficult. When you find the person it is doubtful that they will deal with you. They will most likely just tell you to contact the realtor. The AM’s don’t really have any property specific info that they will give to you. Most of the realtors that list the property do not no property specifics either. In most cases an REO realtor is never at the property.
Bottom line is figure out what the house needs compare it to what they are asking and compare it to what it’s worth.
Typically this figure comes in around 65-70% under asking price. NOT FMV.
It really doesn’t matter what you know about the property, what the realtor is doing or what the bank is doing. Prepare your numbers, make your offer and move on to the next one. Don’t get caught up waiting for a bank to respond. It may be as quick as 24- 48 hrs and could be 30, 60+ days for them to even respond to your offer. Do what you have to do and move on. 8)