Posted by Kirt on December 23, 2003 at 14:49:13:
Your agent is obligated through her fiduciary duty to make all offers, she does not know the sellers situation. Check your Buyer’s Rep. Agreement, you can probably dump her.
My agent sucks! Bank REO ? How much below? - Posted by Brad
Posted by Brad on December 23, 2003 at 13:17:55:
Bank REO in Oakland County How much below can I offer?
I have several properties available one 239K for purchase but my agent insist not to offer too low like 210K. market value roughly around 255K after 10K Rehab for a quick turn over. She pretend to think I am an idiot to ask low. I cant quit her now. but what can I offer? market is sloowwww. Has anyone had experiance getting there REO offers through in Michigan.?
Re: She may know more than you think. - Posted by Scott Shubert (WA)
Posted by Scott Shubert (WA) on December 24, 2003 at 18:13:28:
Brad,
Before I got my license I went through 12 agents trying to get someone to understand what I was trying to do as I was learning about REI and making low offers. Now that I am an agent I have several investor clients and help them find REO properties. One of the things I recently did is create some CMA’s of all bank-owned properties or all sold properties listed by certain agenst who list bank-owned properties exclusively. If no bank owned property has ever sold for less than 95% of asking price there is litte reason to believe that they will accept your offer and you are wasting everyone’s time. If the market is hot like it is here, the listing will eventually sell to a retail buyer for asking price and the bank will not budge on their price.
However if you find an agent like myself who understands creative REI, that agent may be able to help you to focus your time and effort on properties where there is a reason to believe that an investor’s offer may be accepted.
I have just had 2 REO offers accepted and 2 short sale offers accepted all within the same month. One of the REO’s will have a profit of 70K after repair and one will have a short plat with 50K profit. But I can tell when there is a potential for a deal and when it may be a waste of time.
Your agent may know what she is talking about. But chances are even if she is right about this property she is probably in the 95% of agents who primarily only know about buying and selling houses to regular retail homebuyers with conventional financing.
Best of Success!
Scott
Re: My agent sucks! Bank REO ? How much below? - Posted by Mark-IL
Posted by Mark-IL on December 23, 2003 at 17:20:12:
A. You’re stuck with the agent through this deal as she is the procuring cause.
B. You can submit any offer you’d like. She must present it. And 88% of list price isn’t offensively low, anyway.
After this property, you may want to look for a new agent. Even if she presents your ‘lowball’ offers, how enthusiastically is she going to sell it to the other side.
Re: My agent sucks! Bank REO ? How much below? - Posted by Kim
Posted by Kim on December 23, 2003 at 16:45:46:
Brad,
Did you sign a buyers agency agreement? Be careful not to “go around” her as she is likely to prove procuring cause as she (probably) showed you the house. With banks, you just never know how low they’ll go. I just got a Fannie Mae REO accepted - with no counter offer - great home in a great neighborhood, needs no repairs, worth $150k, FNMA accepted $115k with $5k in concessions.
Kim
Re: My agent sucks! Bank REO ? How much below? - Posted by Tim
Posted by Tim on December 23, 2003 at 14:49:24:
I would be looking for a new agent & a motivated seller. I wouldn’t pay anywhere near 210,000 for a house that needs 10,000 rehab & a FMV of $255,000. I know it looks like a 35,000 payday, but holding costs, repair surprises, closings, etc would eat that up in no time.