Here is another property I have been following…I watched it go from pre-foreclosure to auction, then back to bank…still trying to learn before acting (foolish). I’ve driven by several different times, finally there is a realty sign on the window (looks like independent agent–not your typical franchise folks)…and yesterday the house was emptied out all over the lawn (furniture, junk, etc). I contacted the Realty folks to ask what the listing was for, and found out they are working with the bank (Chase), there is no list price yet and to call back in 1 to 6 weeks…sounds like maybe they are investors who cut a deal with the bank to do rehab and split profits?? I was wondering if it made sense to contact bank or will they send me back to realty folks?? I asked the realty if they would consider an as is offer, they said no, but it sounded like a not very informed receptionist. The fmv is around $700-750K, loan bal was around $519K. There looks like lots of room here, but don’t know correct protocol, so I don’t p-- off realty. Should they be someone to partner with or just blow off whole thing? Supposedly these guys only sell foreclosures.
They are just the listing agent and do what the bank instructs them to do. Most REO’s get trashed out shortly after the bank owns them and they have the locks re-keyed. You are right in that some of the agents are almost rude. Call us back jerk we aint got no price yet. I get that a lot when chasing REO’s and they usually end up pricing them at or near market value. FRUSTRATING. Some will deal with you right off the bat, some are getting transfered to Hud or VA or fannie mae. Some banks must order an appraisal before they can sell to cover their butts. Once you learn the rules of the game it becomes easier to deal with the players etc
As Ted said, listing agents are contacted by the bank long before the property is actually ready to list. They have to do the interior BPO, re-key it, do the trash out, etc. If you are interested in REO properties, I think it is a good idea to work with an agent that works in that area. Whether or not you want to work with this agent is another question. Some agents that list REOs exclusively are very busy and may not be very willing to work with buyers that are new to re investing. Maybe another agent with the same broker might be a good idea. Good luck.
Thanks guys, for the sage advice! 8)
Let me just tag-in here with a somewhat related question…I will probably be putting a REO property that is about 60% of FMV under contract with the plan of selling for about 85% of the FMV…I am in contact with the realtor handling it…how do I broach the subject of getting access to the house for a potential buyer/investor?
Howdy Press LLC:
Just ask for a key to be able to get estimates for repairs etc
I have dealt with real estate agents before that would not even admit they had the listing. I went directly to the bank with my own real estate agent sent pictures and my own contract. The bank accepted Bought 7 acres 2600 square foot house with barn and doublewide for 110k. I Had the closing attorney send the listing company their commission check. But boy were they pissed. This particular real estate company has a reputation of sitting on the REO listings and telling the banks they were getting no action and then offering them a low bid for the properties. Don’t be afraid to be aggressive what have you got to lose? If you submit an offer with your own agent in Georgia they are required by law to present the offer.
Sincerely Tony Roland