I’m a very new beginner in this. I’ve got a vacant property in my neighborhood. I’ve found out that it’s owned by Wells Fargo. However; according to there website which list the REO’s, they state that I can only submit an offer through a Realtor. Wouldn’t that be too late to get the propertly at a substancial discount? I would think getting the offer in before Realtor gets it would be the best shot at a nice discount. By the way, the property isn’t yet listed on there web site. I’m guessing it’s a new forclosure.
Actually the answer is not necessarily… Banks are beginning to discount their inventory. Although I hate buying through a Realtor, BTW I am one, if you can buy it for under 60% of market value then the amount you’re paying for advertising can be justified. Remember buyers pay all seller costs within the price of the property.
However here is the problem… Buyers determine price and if the majority of buyers are going to be buying at steep discounts then the discounted price will become market price and when that happens then you will have an overpriced investment property…
You certainly can buy REO properties at a discount.
Just make the offer at what you need, either the bank will accept or they will counter.
It all depends on how long they have had the property, what condition the property is, and sometimes what day of the calender month it is.
I absolutely love the REO’s of this world. Its all I buy. There are deals to be had. You have to have a savvy realtor that works well with investors, is on top of their game, and gets you the deals before someone else steps in.
Lori is correct. There are lots of factors in buying REO’s. Days on market (DOM), condition, location, are they motivated, etc. A great time to hit the banks at the knees is when they have a property that has fallen through multiple times. They are usually tired in dealing with that property and want it gone and looking for a quick close. Keep that in mind.
Hi, you are right about most banks forcing you to deal with their pet realtors. By that time the best deals are gone, sold to professionals and you end up paying market value.
We have found that while waiting to find that dream property for 40% of value and selling it for 70%, you could grow old.
In that time, you could have made yourself thousands of dollars by Helping people stay in their homes! There are probably 1,000 times the number of people who are in trouble that want to Save their homes, not sell them. As it is, only a small number of delinquent properties ever make it all they way to the court house steps. What happened to the others? Savvy Investors market to distressed homeowners. They are contacted by these homeowners! They try to help them save their homes, for which they are paid. They win no matter which way the homeowner goes. If they cannot stay in their homes, the investor has established a positive, trusting relationship with the homeowner. They are on the inside track.
You may consider adding this tactic to your investment strategy.