Home Buying in Temecula>Question Details

Dave Kearney, Real Estate Pro in Carlsbad, CA

I have clients who are very frustrated because they cannot successfully buy an REO in Temecula. What is the secret to getting an offer accepted?

Asked by Dave Kearney, Carlsbad, CA Thu Oct 14, 2010

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Great question.

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.
Web Reference: http://www.teamforss.com
4 votes Thank Flag Link Thu Oct 14, 2010
I don't know what type of financing your clients are using. If it is VA or FHA I recommend they add the closing cost to the list price, that has worked well for me. We have bank owned agents in our office who have their own buyers agents, so you will have to deal with that too. Sometimes you just have to write a lot of offers.
Web Reference: http://www.edsellsre.com
1 vote Thank Flag Link Fri Oct 15, 2010
The secret to getting your offer accepted in Temecula is the same as it is everywhere : write the best possible offer. Write the offer offering the price and terms that are most attractive to the seller based on the comps for the property and reflecting the market conditions and you will have a winner. Do not write low ball offers!
1 vote Thank Flag Link Thu Oct 14, 2010
Hello Dave,
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
Bibi Gonzales
Tarbell, Realtors
1 vote Thank Flag Link Thu Oct 14, 2010
Hello Dave,

Find the answers in a Trulia Blog to find the secrets.

http://www.trulia.com/blog/kevinolson/2010/10/making_an_offe…

Best of luck, and yes, these are tried and true methods.

Kevin
1 vote Thank Flag Link Thu Oct 14, 2010
This cover letter will help get your offers to the top of the stack!

“This 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.”

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.

Thank you,

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
brett@brettchappell.com
http://www.brettchappell.com
Learn more about The Chappell Team on Facebook, Twitter, and Linkedin
0 votes Thank Flag Link Wed Nov 17, 2010
Dave, the truth is that REO inventory in Temecula is low. There are multiple offers on REO listings because almost everything on the market is a short sale. I think this will change soon so if they just hang in there...

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.

Good luck!
0 votes Thank Flag Link Thu Oct 21, 2010
Hello Dave: I will bet that they are putting in really low offers. So many buyers think that Temecula sellers, whether they be (REO, Short Sales or Standard sales), are desperate to sell and will accept offers much less than recent sold comparables.

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!
~~~

http://www.trulia.com/blog/jane_grant/2010/10/there_are_so_m…
0 votes Thank Flag Link Sat Oct 16, 2010
Wow, yes I agree Temecula is one tough place to represent buyers using FHA/ VA financing..multiple offers everywhere!, Temecula is about 40 minutes from me and I normally dont work there..but I did have one closing 5 months ago and it was on a short sale and luckily it was a Prudential agent. What I did literally was when I had the listing agent on the phone and I gave the phone to my buyer and told him to tell the listing agent that he was in love with the house and that he would put the earnest money in escrow immediately (this was a short sale) 5 months later we closed escrow...I would imagine this migh work if it was an REO as well.
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.
0 votes Thank Flag Link Fri Oct 15, 2010
Dave, I'm a lender not a Realtor but in our office we are starting to see a change in the dynamics up here.
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.
Good luck!
Web Reference: http://firsttimehome.us
0 votes Thank Flag Link Thu Oct 14, 2010
There are many people competing for homes in the Temecula area. Many times, the bank price is lower than what it actually sells for. You definitely have to check the comps to find the true price/value of the home. Also, banks look at their bottom line, so if you buyer is asking for closing costs, home warranties, etc... each thing decreases their chances of getting an offer accepted. Cash buyers are in abundance and do not ask for anything or have any contingencies. Take a look at each item that might be typically asked for in a normal transaction and see if you really need to include it in the offer. Best of luck to you.
http://www.TemeculaInvestmentHomes.com Christine
0 votes Thank Flag Link Thu Oct 14, 2010
Pull up any of Lance Martins listings imartlan. When the market started turning he created a doc called
0 votes Thank Flag Link Thu Oct 14, 2010
Persistance and follow up. Dont get lost in the shuffle and make sure the listing agent knows you and your client is serious about wanting that house and not just throwing out offers just in hopes of getting one accepted. If you keep in constant communication with the listing agent your chances of getting that offer accepted increase drastically. Best of luck to you and to your client on finding the dream home.
0 votes Thank Flag Link Thu Oct 14, 2010
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