Home Buying in 89117>Question Details

Oysterriver1, Home Buyer in 89117

A for sale sign was posted for a REO. Its under contract and in escrow. Why can't i still see the home and make an offer?

Asked by Oysterriver1, 89117 Sat Dec 25, 2010

The for sale sign was posted the same day I called. How can a property be advertised for sale if no potential buyer can see it?

Help the community by answering this question:


Sometimes friends, family members or other investors have a "heads up" and know that a particular home is becoming an REO. Many times these buyers have already contacted the bank involved and have placed their offer prior to it coming on the public market. You can still pursue the property and place a back up offer should the initial offer not work out. The listing agent who is representing the bank should still allow you access to the property so that you can determine whether or not you want to go forward.
0 votes Thank Flag Link Sat Dec 25, 2010
If the home in question is under contract and in escrow that is what it means "under contract and in escrow." Usually the listing realtors keep the lockboxes on the property until it actually closes escrow. So, have your realtor take you there to see it. That way you will know if you like it and want another just like it. Many times there are several homes in the neighborhood that are foreclosures and many times the same home is for sale just up the street. So view the property, and then view the others and make your offer on the others and not on the one under contract as it is no longer available unless it should fall out of escrow. BTW: in Las Vegas, foreclosure homes quite frequently get offers and go into escrow the same day they are listed, so I would not say there is anything unusual about this at all.
1 vote Thank Flag Link Sat Dec 25, 2010
Who told you you couldn't see the property? Certainly you can make a back-up-offer is you can get an agent to write it for you. Most agents consider a back-up offer a waste of time, and since agents are on commission, they don't want to waste their time. They'd rather sell you a house that you actually have a chance to get. Most REO properties have 10-20 offers within a day or 2 of being listed, many of which are investor offers of all cash. The owner, which is the bank, usually wait a couple of days to let the offers pile up, then choose whatever offer gets them the most money. The other offers usually go into back-up.

The Multiple Listing Service is available to all agent members of the Board of REALTORS. Immediately upon pressing the final button to enter the listing into the MLS, it becomes available to all those agents, and all their buyers. The agents can even set up an automated program to direct those new listings to buyers who they work with. The sign can go up before it is listed, if the agent knows beforehand he/she is going to get it, or it can go up later. Signs may take 1to 3 days to be installed after they are ordered. Usually the agent does not install the sign,

If you develop a relationship with a good agent, one that is working for you, they will set up the automated notification for you, and they will be more willing to write back-up offers for you. That way you will know very early on about any new listings. This still does not guarantee you will get the property you want in this market, but at least you will be in the running.

Good luck in your house search.
0 votes Thank Flag Link Wed May 2, 2012

Q: A for sale sign was posted for a REO. Its under contract and in escrow. Why can't i still see the home and make an offer?
A: As stated below, you usually CAN see it and also write an offer. It will be placed in a back-up position only.

Q: The for sale sign was posted the same day I called.
A: The sign out front often has no direct connection as to when the house is actually listed or placed on the market. Signs show up late, or can be on the property for weeks before it hits the local MLS. Your best bet is to work with a local Realtor who will set you up with autofeeds that will provide you immediate notifications when properties you are interested in hit the market. As an aside, all too frequently REO listing agents will not return your calls if you call off of the sign. In some cases, the banks do not even want the listing agent representing a buyer. And if you think that by going direct to the listing agent you can score some kind of a deal, forget it. Doesn’t happen that way.

As suggested below, get a local area Realtor with a solid track record representing buyers in the purchase of REOs.

Q: How can a property be advertised for sale if no potential buyer can see it?
A: Obviously a buyer saw it – and wrote an offer. They just beat you to the punch. Work with a Realtor as suggest above and you will have a MUCH better chance.
0 votes Thank Flag Link Mon Dec 27, 2010
If the home is under contract and in escrow why waste time recommend push on for another home. If escrow means the lender AND buyer have agreed to terms.

Your buyers agent can place property on "watch list" and determine if is falls out of contract, then you can submit an offer.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Mon Dec 27, 2010
Try contacting an agent in your area and ask her to show you the home. If you're still interested, then, have her contact the listing agent and tell her if the home comes back on the market you'd be interested in making an offer. Most banks do not take back up offers. So you'll have to wait and see if this contract falls out. This usually happens during the inspection period, so keep your eyes and ears open.

Best of luck to you!
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Mon Dec 27, 2010
Banks don't typically take back up offers but it never hurts to submit one. If they are not letting you in you can also write the offer subject to interior inspection.
0 votes Thank Flag Link Sun Dec 26, 2010
When an agent received a reo listing, it is not put on teh makret immediately becuase it most cases it may have someone to evict, it may need to be cleaned, may need repairs to make showable and always needs to be appraised to find out what it is worth in todays market.

During this time that teh agent waits for a price, they can bring in potnetial buyers who are on their list. When the bank sets the price, these buyers can make their offer immediately. A sign is usually not put out until a price is set because an agent can only explain so many times there is no price yet as irate callers berate them for not having one.

Once it goes under contract, it depends if their are any contingincies with the sale and what they are whether you should even bother to see it and make an offer. if it is a cash sale with no contingoncies, then there is no use, if it is contingent on finanancing or an inspection, ask to pyut in a back up contract.

please see my blog with tips on buying a bank owned home
0 votes Thank Flag Link Sat Dec 25, 2010
You should still be able to see the interior and even place an offer - but it has to be a back up offer. The listing agent can put the sign and even continue showing it until it's closed escrow. A deal can fall out of escrow even in the last minute of the process.

Charita King
0 votes Thank Flag Link Sat Dec 25, 2010
The nature of you question leads me to assume that you do not have an agent. That is a mistake. If you have an agent you would not be posting this question because your agent would be answering it for you. Your agent can contact the listing agent and determine whether it is possible to show the house to you and for you to submit an offer.
By the way…interesting thing about real estate signs that you see in front of a house. They serve more than one purpose. The sign serves notification that the house is for sale. It also acts as a sign board for the listing agent. It shows that the listing agent is active, working and available. It invites phone calls to the listing agent who may be able to generate additional business because of the sign.
0 votes Thank Flag Link Sat Dec 25, 2010
Who is telling you that you can't see the house? Since it is under contract there is already an accepted offer by the bank and they may not want any back up offers, which is what any offer now would be. Banks are unusual sellers and they don't always act like a real person does when selling a house. The bank might have told the listing agent they do not want any more offers while they work with the one they have and there may be several back up offers already in place should the primary offer fall apart. The listing agent knew about the upcoming REO listing and may have shown it to a buyer already even though the sign went up the day you called. You should still be able to go see the house even though there might be a dozen offers already and the bank may be saying no more offers please.
0 votes Thank Flag Link Sat Dec 25, 2010
Did the listing agent tell you and/or your buyer's agent it can't be shown? That would be very unusual if that's the case, because most REOs would welcome viewings by potential buyers should the first buyer back out

Get your agent to check further. I'm sure you can still see it...as for writing an offer, if you do, you can write as a back-up buyer. Nothing to lose.
0 votes Thank Flag Link Sat Dec 25, 2010
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