I want to make an offer on place in LV, Nevada. The Agent will not present offer.Said it was to low. The bank owns the place. Can I just go to the bank and tell them the Agent they have working for them refused to present offer? Should I call another agent? I have CASH to deal with. House price at $600,000.00. Sold 2 years ago for 1.2 million. I offered $275,000.00. Sounds low but Pool needs 20,000.$ in work. Air conditioner's do not work, No Kitchen Appliances. Paint is pealing off outside. Roof needs to be replaced.
What do you think I should do?
IrishGurl

You won't be able to get to anyone at the bank with authority to accept an offer but you certainly can ask another agent to represent you as a buyer's agent.

But do be aware that the seller may have instructed the agent not to submit offers below a given amount which is the seller's right. In that case the agent would not be bound to present your offer.

Why not work with a buyer's agent & have some comps run?

How long has the bank had it on the market?A buyers agent can give you current market value and let you know how many days the property has been on the market.

All your doing going to the listing is taking away free buyers agent representation for yourself as the bank is already paying the commission.Before your too smart for yourself NO the listing agent won't reduce there commission if they work with you.The bank had a signed agreement with them so you can't work around them the broker will get there full commission.

It's highly doubtful the bank will take 45 cents on the dollar as you proposed.Work with an agent and have them do the legwork submiting offers it's free to you.

Fwiw, with one of the bank owned units I have listed the asset manager has instructed me to automatically counter offer (with a specific number) any offer below that amount.

So it isn't all that unusual for an agent to have instructions from the seller not wanting to waste time on lowball offers.

The problem I'm seeing with buyer's is the *buyer's market* notions have gone to their heads & there are way too many self appointed experts out there giving buyers really bad advice on how to buy foreclosures.

As Super Realtor said, having a buyer's agent costs you nothing & you can get some guidance in setting a realistic price to offer.

I am a Real Estate Agent in Las Vegas and I can tell you that you would be wasting your time and the Realtor's time with that offer. Las Vegas' market is bad now but it is not that desparate. The bank would not even respond to that offer. When properties that are bank owned here are listed they have a very good idea what they will sell for and they can find plenty of buyers who will go a lot closer to list price than what you are trying to get it for.

I agree with Bubba, that offer is nothing but waste of time and paper.

That's why it is priced at $600,000. You need to learn the market.

IrishGurl, I sent you a private message.

It is the listing agent's obligation to present any offer that is submitted, unless the bank specifically said not present offers below $XXX amount.

Buyer's Representation is key. Let me know if I can help you with finding a great deal in the Las Vegas area. I am a great negotiator.

Wow lots of help Thank You. Agent went to her Broker and wined about me. Broker called and said he would call bank. Bank called me. Bank said they would take me offer ASAP. Balance owed on loan was $268,000.00. Agent would get anything over the balance owed

Doesn't make much sense. You said that the list price was $600K, yet they only owe $268K? What is the home worth? Why would they list the home for $600K if it's not worth anything close to that? Why would the bank give any remaining funds to the agent on a home that the bank owns? They would keep it. Doesn't make much sense to me.

This is why you should have a buyer's agent...

Isn't that a "net listing" and is a net listing legal in NV?

Sounds like it could be, but why would a bank do a net listing? That is very uncommon. I also believe they are not legal in Nevada. There are many lawsuit issues with them. The sellers don't really like when an agent walks away from the sale with more money than them...

OK here is the deal, the agent will not present the offer if the bank told him in advance don’t present offer under particular price. You won't be able to reach anybody from the bank and 50% under the listed price is very aggressive and low ball offer which I would not present too.A bank would never entertine an offer like that. I know that the market in Vegas is low but I don’t think that the bank will give that property to some one as a present. I don’t think that the pool, A/C and whatever else cost $300,000. For that money they will build a new house wow. Put and offer 35% under the market value and you may take it. Just make a strong offer, if you don't know how ask some agent. So learn that would help.

So you wouldn't present an offer that is 50% below market value to the bank? How do you know that a bank won't entertain that? Who are you to make that decision? Just because an offer might be a low ball offer in your opinion, doesn't mean you can decide to not even show your client! Your post doesn't make too much sense either.

This whole scenario sounds implausible. The hose sold for $1,2 million and there is only $268,000 owed? The bank called you? The agent gets the extra money? Get real.

contradiction. did you make the offer or not?

I think this whole thread is BS.

The unfortunate thins is that REAL buyers stumble across posts like these and think they can really buy a $600,000 house for $275,000.

I hate when people say "balance owed" on an REO. The bank owns it, they "owe" nothing. The dollar amount you see is typically the minimum bid at the courthouse steps, not always what was actually owed.

I don't buy it. The property would have sold at auction if what was owed on the property was that much less than market value. No investor would have let it get by them we are reading an exageration or the 600,000 list price wasn't even close to market. Since we know this is not a short sale responses do not occur that rapidly.

Very interesting !! Do you get a lot of properties over there that get sold for a lot less than the banks asking price in general or is this just a mith ? I'm sure the banks aren't silly with their valuations ! Property in Spain is declining somewhat but i don't think it is as much as what you are saying for over there, we need a correction anyway as prices have gone up so much for so long now and it's difficult to get on the ladder if you are a younger person entering the proprty ladder.
You must be getting close to a rebound over there if all goes well.
Does the market show any signs of a recovery soon ??
Good luck to all those speculators

I was educated by an Asset Manager from a big-time lender. Once it gets into the REO department, the bank owns it. It does not matter how much was owed. If it's worth $200,000 according to BPO and appraiser, it didnt matter if $10 was owed on it, or $300,000. The lender will try to get as close to market value as possible with a range in their business policy.

007, again, I dont work in your market and you are obviously the short sale specialist. But based on my understanding and experience with working with buyers on foreclosures, should those numbers are real (highly doubt), at $600K (maybe it is listed at market value), all the bank really has to do is just to mark it down $150K (based on original poster's statement of pool problem, etc.), the bank would already be getting 3-5 offers just in the first day. I highly doubt it would take $200K or even $250K.

I have not walked too many roads yet but I also know that there ain't no free lunch.

Irishgurl,

have you ever been to one of those investor seminars?

Maxx, I don't think banks are going to give away their properties, but someone had mentioned that it wasn't even worth presenting the offer to the bank. I don't feel that this is right. The banks in my area are listing properties at such a low price, most results end in an over list price sale due to bidding wars. This is extremely common right now.

I agree with Auburn and BigToe. The statements by the original poster are too far fetched to be believed.

And on a side note -- wasn't there a time when Agents Online was a forum for the exclusive use of agents? Did that change at some point? I must have missed it.

No. Nobody said that buyers and sellers cannot come into this forum. Actually, some of the sections are for buyers and sellers to ask us agents their questions.

Not only is this forum open to the public, these posts do very well in the search engines. The public is finding what we write here by accident.

In this day and age of problems why would the bank keep the home rather than getting the bad debt off the books?

Peter

This thread started 5 months ago, so this particular home has probably already been sold. But to respond to your question, selling an REO asset is part of the loss mitigation process. The owner/bank is taking a loss. They want the loss to be as small as possible. They are not going to give away property just for the sake of getting it off their books. They retain REO brokers who run CMAs and they also get second and third price opinions to set the price for the property.

The key is if the particular foreclosing owner already has a big number of defaulted properties on the books. If so they will be pressured by the regulators to get there numbers back in line. Asset Managers need to move property so it's a crap shoot. I have studied my mls and certain banks price very aggresively to move while others are more unrealistic in value. It also depends on what is wrong with the property. The more problems it has the more money a cash investor can make with a lowball offer as the bank has no other buyer to purchase this problem property.

Whatever you purchase you want it to have alot of upside and profit potential.

[quote=Irishgurl]I want to make an offer on place in LV, Nevada. The Agent will not present offer.Said it was to low. The bank owns the place. Can I just go to the bank and tell them the Agent they have working for them refused to present offer? Should I call another agent? I have CASH to deal with. House price at $600,000.00. Sold 2 years ago for 1.2 million. I offered $275,000.00. Sounds low but Pool needs 20,000.$ in work. Air conditioner's do not work, No Kitchen Appliances. Paint is pealing off outside. Roof needs to be replaced.
What do you think I should do?
IrishGurl [/quote]


Hire another agent as your buyer's agent.