So, I want to submit offers to all new REO listings. I have email updates on new listing. I have the standard state approved contract prefilled out. BUT I have a hell of a time figuring out who the listing agent is. All the sites have IDX information without any contact information for the listing broker. I don’t need a broker for any reason, except to find the listing broker. Does anyone have a way around this. I am basically looking for a system to send as many offers out as possible.
Thanks!
Obviously, Derek, you DO need a broker if you can’t find out how and where to submit the offers.
Why would you not have a broker if you’re planning on submitting offers to listed REOs? You’re not going to save any money by doing all the work yourself. Having the ‘standard state-approved contract’ is worthless. First, it’s likely that no agent will accept it from you in the first place, and second, 9 times out of 10, the REO will have their own specific contracts that must be filled out in place of any standard contracts.
The simple answer here is to find a local agent that you can work with and have them submit the offers for you. If you don’t have a proven track record of buying, then you may have to pay a small fee upfront to the agent, especially if you’re planning on writing out alot of offers with a low success rate, but it’s still a better way to go, plus you can train the agent your way.
Another option is to find the top two or three REO agents in your area and contact them directly. You can choose to use them as your buyer’s agent or not (again, no cost savings to you, so why not). Either way, you’ll have direct access to the listings. Problem here is twofold: again, if you’re not already seasoned, these agents won’t give you alot of face-time. And they already have a list of experienced investors that get “first choice” on the listings. You’ll have to earn your place in line with these agents.
Raj
Whay are the chances of offers being entertained if investor has not looked at the property…wouldn’t that b considered “dry offers”…agents will not consider an offer serious becoz we didn’t even ask for the lock box code prior to making offer ?..am I off with my thinking ?
On REOs especially I think…since they are vacant they won’t know if you’ve seen the property. I think though if you submit the offer through a buyer’s agent , they will be less likely to think that you haven’t seen the property.
I did submit an offer directly to a listing agent and the guy didn’t want to consider the offer ,because he assumed I hadn’t seen it since I wasn’t working with an agent.
They will probably assume that you viewed it with the buyers agent. It would be different than if there were people were living in it.
I used to think it’s better to make offers directly , but now I think it’s probably better to go through a buyer’s agent that is willing to work with you . Make sure they understand you are looking for investment homes and have some idea of what investment homes are …and that you don’t want a pretty little house to live in.
Gotcha…so my buyer agent has to be my working buddy…just contact them ,tell them I saw something and I want to make an offer…they dig around to see if their offers on the house and proceed from their…don’t we want to give them alittle something for their efforts though,even if they get tjeir cut from the sale of the property ?..not much but would be cool to throw them a bone to show aooreciation…don’t you think ?
I haven’t heard of people giving buyer’s agents cash or anything .
I guess you could take them out to lunch or something…
I think giving outright cash could be considered unethical or illegal possibly?..
yes…I believe you are right…hate to loose my shirt over a gesture of gratitude. :eek
There isn’t a lack of real estate agents in this country though,…
Find one that is hungry/motivated to make money . It is to their benefit to get you some accepted offers as they will make a commission.
As to making offers on REO’s you haven’t seen:
Usually, there is a place on the contract that must be checked as to whether you’ve actually seen the place or not, so the listing agent is going to know this whether you’ve used them or another agent. It won’t make a difference to the Bank/owner, those it may to the listing agent. My thoughts: Tell them (or your BA should tell them) to give over it. It’s legal, and valid and is not a method for ‘getting out’ of the contract.
As to paying an agent fees outside of commission:
It’s perfectly legal to do so long as it’s written in the buyer’s agent agreement. Depending on the amount of offers you are planning on writing, the amount of extra work you intend for your agent to do (like comps, for one example), and the drive-time you intend them to do (like showing you every property), you may want to consider an upfront fee and/or an hourly fee.
Even the ‘hungry/motivate’ agents will quickly drop you if you’re making them do alot of work and they have nothing to show for it. As investors, 90% of your offers won’t get accepted, so you have to make a lot of offers. Make sure you keep your agent happy during the unproductive times, so that they’ll be thinking of you when that great deal does come along.
Raj
Yeah it makes sense, I guess I just haven’t heard of giving the agent an hourly type fee really.
I didn’t know if it was really an “ethical” thing or not.
If you are making a lot of offers eventually you will get something, but I can see why realtors might be frustrated with investors…
because they want something at the best price…while an owner occupant usually wants a nice how to live in , price is an issue, but it’s not the main issue.