I am real estate agent and am trying to buy reo property for my buyer. It seem like its equally difficult to buy a good reo property (not getting the listing but buying) once it becomes somebody's listing.
We have tried couple both offers were more than asking price.We gave them with in couple of days property came into mkt. Both times got same answers "property just went in under contract today only"
So is it really difficult to even buy good reo? It seemed to me listing agents were controling all the shots.
What could have we done different to get those properties?
Advise please.

Most REO companies work with RE brokers to list the properties. What exactly is your buyer's motivation to buy REO property?

investment

It's a very competive market in most areas, especially if they are pricing the reo's under market.

You have to move quick for the best deals.

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Wes Murphree
Investment Realty
http://www.SCInvestmentRealty.com
http://www.3NetLease.com
http://www.MultifamilyListings.com

Occassionaly I have worked with clients who were looking for investment purchases. I find out exactly what they are looking at such as cash income or a resale fixer-upper, the area they prefer, etc. This one client of mine wanted to buy a fixer-upper in a specific area. I drove around and knocked on doors of homes that appeared to need work. One homeowner was getting himself into a finacial bind and it worked out for him to sell and my client to buy.

Most of my REO listing sale at over 10% higher than list price and in less than a week.

I also sale most of my REO listing and in all cases the Listing Broker will have a significant advantage... time and knowledge.

Long before a Broker normally gets an REO listing they will have provided BPO on the property often months previously. As the Broker gets the listing, the do not usually get a list price... another BPO has to be submitted and reviewed.... this often takes weeks... All this time the listing broker is marketing the property and it isn't in the MLS because it does not have a list price from the seller.

By the time the seller gives me a list price I often have 3 or 4 offers to submitt... just before I put the listing in the MLS. Most companies require a minimum 3 day list period but they already have my multiple offers in and some are typically above the list.... so bang... it is under contract before most agents can even schedule a drive by to look at it...

To work REO from the MLS you MUST look at the MLS HotSheets several times a day or if you have the capability have it automatically notify you when properties with your criteria come into the listings.

The best way to actually work REO is to be Broker associated with lenders who generate them... or 2nd choice know a broker that does and work with him.

The Best way to get deals your buyer is looking for is NOT REO but Pre-Foreclosure properties and Probate Properties. Again these are NOT typical real estate deals and require becoming or working with an agent knowledgeable in how to work these deals and they are almost always Cash deals but with significant discounts. My last one, was a $62,900 pre-foreclosure with an AS-IS market value of $75,000, we picked it up for $32,500 and defaulted borrower was forgiven the remainder and no foreclosure. This never was seen by REO or MLS reviews... except as a listed for info SOLD comp. Had an almost exact similar one 2 weeks ago that we flipped and I had 4 sides of the sale and 3 very happy customers... that is 100%

[This message has been edited by Realty Check (edited 08-09-2004).]

The truth is the listing agent does have lots of control over the listing and who buys it. I Work in Atlanta, Georgia and 90% of my clients are investors. I have ran into a problem more than once where i felt that the listing agent was disclosing my buyers offers to there buyers in order to keep the whole commission. One time i submitted an offer & that same listing agent told me that THEY RECEIVED MY OFFER & THE SELLER WOULD RESPOND IN 4 DAYS. When i called back in 4 days, which is an unusually long time for banks to respond, THEY TOLD ME THAT THEY DID NOT EVEN HAVE MY OFFER, BASICALLY THEY "LOST IT". I WAS VERY UPSET ABOUT THE WHOLE INCIDENT, & did i mention, my buyer lost that deal. BUT on fortunatly that is how it goes. Therefore my answer to you is be very AGGRESSIVE AS I AM & CONSISTANT, BUT REMAIN PROFESSIONAL @ ALL TIMES. MAKE SURE YOU CALL TO FOLLOW UP ON OFFERS & BY ALL MEANS, GET THE NAME, TIME, DATE, EVERYTIME YOU CALL. THAT IS THE KEY TO MY SUCCESS WHEN REPRESENTING INVESTORS BUYING REO'S. ========