Making Offers on Bank Owned Properties

If I can find REO’s without the help of a Realtor, can I make offers directly to the list agent?

Yes you can. Butays remember that a listing agent is not yiur agent. He works for the bank and he has a duty to act on any information he has on you for the bank. If you tell him you can pay up to $100,000 he has a duty to get every bit of that money from you.

If you get an agent his fee comes out of the listing agent’s pocket not yours. Choosing not to have an agent is volunteering to not have a team. It is like playing a football team and just not fielding a tightend.

I agree with bluemoon . your agent protects you, and it costs nothing more. if they have listed it. typically a 6percent commission is paid, the split is 3% selling 3% buying, of that 3% your agent gets about 1 1/2%. if you go to the listing agent that brokerage splits the 6%. and you have no real buyer representation.

I have went bank direct before, if you can find out who deals with the reo’s from the bank. this was before it was listed with a realtor. we negotiated a price agreeable to both of us, I even collected rehab money in the loan with the bank.

By the way, my wife used to be a realtor. You have no idea what they go through to make a sale for you. She spent her money and gas to carry people all over the place and them they would go direct with the selling realtor. they thought they were saving money, and all they did was cut her out of the commission that was paid anyway.

I now use two realtors pretty exclusively. they bring me deals all the time. they know my parameters and if something shows up I get first notice. they know I can get bank letter and earnest money quick.

Definitely YES! The last deal I did, I made an offer to the bank’s agent on a home that appraised for $550k and they were holding a defaulted construction note for $437k. I offered $437k, bank converts construction loan to a 30 year fixed at X% with a 7 year call/balloon, and a one time ‘non-qualifying loan assumption’ (by me, of course).

The agent said that the bank would not accept such an offer. I looked at her sternly and said, your license requires you to make this offer to your client! Three days later, I received a call from the banks attorney asking me when I can come in to close the transaction and to bring just under $5k for the pre-paids on the escrow being set up for insurance and taxes.

I just about fell off my chair…went to the bank, got a check…and closed on the house!

Although I agree with others that it is good to have a ‘buyers agent’ to represent you, I believe if you are confident and thorough with what you are doing, you can just use the bank’s agent on REO’s.

Hope this helps.


You can have the best of both worlds you know. If you find a REO property on your own, bring it to your agent and have them submit the offer for you. It will not cost you a dime since the seller pay the commission for both sides. Plus, you also now have a team fighting for your interests.