preforeclosures listed with realtors

General Real Estate Investing
1

i have my preforeclosure list which i search the MLS before I doorknock. I’m noticing some of these homes which were listed previously have accepted offers well below the OLP (original listing price). My guess this is a combination between them going to foreclosure (obviously) and the market changing.

Having that said, does anyone on the board invest by searching out preforeclosures which have bene listed with a Realtor and then putting in an “semi-lowball” offer which is more likely to be accepted than a regular listed house? Although the profit margin will be trimmed down a bit, I see this as another way to do some creative investing…anyone care to share some input?

ryan

2

The MLS is an excellent source for short sales, or as some people call them, pre-foreclosures.

All offers are “subject to bank approval”, as-is, and no warranties. Most banks will accept offers paying buyers closing costs.

Banks have to appraise property, and base the listed price on that. They must net a certain percentage. For FHA loans it must be 82% of appraised value. Net means after commissions, seller consessions like closing costs. Banks do no repairs. You can have an inspection, but they do not remedy.

The good news is they usually appraise lower than market value.

The bad news is they take forever to answer, they are difficult to deal with and sometimes even with a good offer, they let the property go to sherrif sale.

Jan

3

Knock on doors? The propery is listed for a reason (beyond being a requirement for a short sale agreement), and part of that being not having to deal with buyers directly.

Do you have a Realtor? Your realtor should be setting up appointments for you to get in. You should not be dealing directly with seller. It does not save you any money, the listing Realtor will get a dual agency deal for the entire 6% commission. And you will not have the best representation. Better to have YOUR Realtor looking out for your interest.

Jan

4

hey wildflower,

i knock on doors only after i’ve checked the MLS to make sure they are not listed ;]

also, i have my realtor license.

thanks for your input :slight_smile:

ryan