There is not one secret. There are many "secrets"... :-)
We list bank owned properties for 12 different REO clients, including BoA and Wells Fargo. There are many ways to respond to this question as it all depends on which bank the property is listed with, what type of clients you have etc. For example, some banks require the home to be on the market 8 days before they accept an offer from a home buyer and in the unlikely event there's no offers accepted, they will consider an offer from an investor 14 days after the home has been listed.
Some other banks do accept an offer within the first day it's listed. As an example from today, we listed a REO (bank owned) home last night. We received ONE offer on it this morning and the bank already accepted the offer. Within 24 hours from listing the sales contract has already been printed and signed by the buyer!
There are some good point made below (financing, EMD, inspection period, concession, ...)by the realtors and loan officers. We can help you further with more strategies, if you contact us. We will be glad to help you.
There is no real secret, but always make sure your buyer sends more than just a basic pre-approval letter. Banks like to see approval letters and proof of funds. Many out of area buyers still want to offer under the asking price in Temecula. Even though their are a lot of distressed homes here, they banks are receiving multiple offers, and especially if they are desirable homes. Many buyers are now offering at or over asking. If your clients love the home, we recommend not ask for closing costs if they can afford to. This will make their offer more favorable. REO agents like to receive a clean easy to read offer in one .pdf document. It makes submitting your offer to the bank a lot easier. I hope this helps
Find the answers in a Trulia Blog to find the secrets.
Best of luck, and yes, these are tried and true methods.
â€œThis client is not pre-qualified or pre-approved. They are fully approved and attached is the approval with my underwriters signature on it. All I need is an appraisal, title report and escrow instructions to move us right to docs.â€
This is what I do for my clients. Most listing agents appreciate knowing they are working with an agent and lender who will get the deal closed on time. Stop with the pre-quals and start with the loan approvals.
Brett L. Chappell
Your Mortgage Professional
The Chappell Team at MWF Inc.- Temecula West
43460 Ridgepark Drive #200U
Temecula, CA 92590
(951) 316-1315 phone
(888) 360-9418 eFax
NMLS License # 356537
DRE License # 01360291
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Of course, they need to be submitting strong offers to get them accepted. Be sure they are pre-qualified by direct lenders to give the seller more confidence in their approved status.
This is such a common concern because many buyers think they can put in offers that are $20,000 below the already discounted short sale or REO price and get the home. I wrote a blog about it below!
If you have access to our MLS then look carefully at recent sales and make offers accordingly. If you don't have access to our MLS I would be happy to work a referral with you!
Or find the company that holds the most REO's in Temecula and move to that company a couple of years ago when the REO market was really big I did just that, its easier to submit offers " in house" and use "in house" financing as well.
What kind of buyers are you working with and in what price range? Like Jane said if they are lowballing offers that's probably not going to be successful because we still have a healthy demand up here.
If they are first time home buyers and using FHA financing, same story. Lots of competition and many sellers holding out for conventional or cash offers.
The other factor is price range, there is a tipping point around $200k, below that more competition, above it less but still healthy competition.
Lots of other factors involved but we are starting to see more being accepted without multiple bids.