each Realtor Association owned mls data base is different. Your agent obviously knows his/her field criteria, what they may try doing is if they are familiar with certain brokers that list many REOs is do a broker field search. That would at least reduce the number of full descriptions they have to review.
On a side note, this is alot more demanding than simply pulling up listings, and there have been many discussions on this site as to signed rep agreements with agents, I would not perform this type of search for a customer (no signed agreement) but only for a client (signed buyer rep agreement).
I just called severl local title companies for REO property listing. But none of them had any. I translated REO property as the properties that banks hold on their default mortgages. Did I get it wrong? BTW, what does REO stand for?
Title companies would not be aware of listings…
Once a property is under contract, typically, is when the title co.s job comes in, i.e. searching abstracts and previous title policies for committment purposes.
Listings are not public domain, but rather, a big list
Realtors share with one another through mls databases, most are now web based, but fully accessible only to members of their association (e.g. MetroTex is Dallas/Ft.Worth association and mls). Through many member Realtor websites the public, although sometimes once you log onto their site you become their customer, you may be able to access listings. In general REO’s have no searchable portion of their listing, that makes them an easy find. as pointed out there are other sites for VA and HUD foreclosures, but an inquisitive and serious agent can probably sort these out for you if you hire them.
I am only familiar with the mls in greater DFW area, but i have looked at the search criteria and there is not anywhere i can see that would specifically and uniformally list as REO. As with any database with multiple users and inputters (is that a word?) the information that is able to be gathered is only as effective as their initial information provided, and in appropriate fields. Many times there are errors and misinformation and if no field is available then one can only scan them all, unless other clues can be used. If I were searching for REO’s I would do a search using the listing broker or agent, and for that field I would put the id of agents or brokers I am aware list many REO’s, I would then have to look through those listings in remarks/descriptions to see if in fact they are REO’s, if that information is even provided per the instructions of the seller/bank.
Back when we bought our REOs the broker gave us the MLS book to look through. This gave US the opportunity to work #s first and to see if they were bank owned. As far as I know now, there isn’t a MLS book. This was in 1995-96.
If the realtor has to go through all the listings, yes it can be a lot of work.
REO = “Real Estate Owned”…meaning real estate owned by a bank or other lender. These are obviously properties that they have taken back for non-payment. Banks are not in the Real Estate business, they are in the money business and it costs them big to hold property.
Don’t tell anyone, but there is a way to do wild card searches on most if not all multiple listing services. Keep weeding through agents until you find one that knows how to find them. I’ve set my mls up to notify me the day a REO, that meets my specific criteria, is listed. I have set up client gateways that send the REOs to my client. Please remember that not all REOs are good buys. The great ones can and often do list and pend within days. You must be able to pull the trigger when the opportunity presents.
I know I have been moving slowly on property due to inexperience, caution, and all kinds of excuses I could make up. It has been frustrating because I know my slow timing has caused me to miss out on some good deals.
How soon after you see a property do you make an offer? The process I have been working on is look at a variety of houses do walk throughs on properties of interest, make list of estimated repairs and price it out, figure totals and then make an offer.
That is the same diligent approach most part time investors take. It is important to feel comfortable with your own pace. I can assure you, however, that on the great REO’s by the time you sharpen your pencil, multiple offers have already been submitted. I looked at a property last Friday 1 day on the market. While I was there, 3 other investors showed up. Before I got there, I already knew ARV. The only question was how much profit would I be willing to give up with an aggressive offer. As I walked through the property, my general contractor was able to give me a rough estimate of repair cost. In this case no more than $10,000. The offer was submitted that afternoon with earnest money and proof of funds. As it turned out 16 offers were received by Monday afternoon. 10 were cash offers. My cash offer was one of the 4 the agent sent to the bank. Yesterday I called the agent and he let me know the bank accepted an offer $1,500 higher. Done deal, thanks for playing, he didn’t even counter. I love these deals and sometimes I get the property. Would I have paid another $1600 for the property? Yes, I probably would have. A better agent would have countered me and got more money for the Seller.
Timing is everything. On my 31 unit deal I made the offer over the phone with the seller minutes after I saw it on Loopnet, the same day he listed it. We agreed on the price and he wanted me to see it first before signing the contract. I got in the car and drove the hour and half and called him and said we still have a deal. It was in the title company via fax the next day. There were other offers later that matched mine but I already had it hook line and sinker. I fixed it up with a HML and just sold it for a profit of $100,000.
The next deal almost the same timing. I saw it Thursday AM when it first came out on Loopnet and called the agent and he faxed me the contract and I signed by noon. The bank accepted the offer by noon Friday it was in the title company. I took the 3.5 hour trip to see it Saturday and am almost ready to close in a few weeks. Others wanted it too but I jumped in almost blindly and am going to make it another success story for the forum.