Submission of offers on REOs

Asked by Mc, Sacramento, CA Tue Mar 10, 2009

I read the comment below on another thread. Is this statement apply to the Sacramento, CA area?

"You should know that submission of offers on REOs does not occur until 5 days after the listing date (and MLS entry). This is to allow enough market exposure so that all parties initially interested have a chance to view the property and submit offers. The bank then also has an opportunity to consider fair market value based on possible multiple offers. Even after the first 5 days, many REO asset managers (the bank representative managing that property sale) ask the listing agent to wait to submit after another weekend in order to drum up possible additional offers."

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Dp2, , Virginia
Wed Mar 11, 2009
Actually, whether or not Deutsche Bank operates using this SOP for its REOs shouldn't matter. Why not just submit your offer anyway? You already know that the listing agent will have to present your offer to the asset manager. Although you have little or no control over when that agent will present your offer, you can use a 'kill date' in your offer to state how long you're willing to wait for them to respond to your offer.

This way you can make multiple offers within a relatively short period of time, and not worry about having too many pending offers on the table. Plus, you'll be able to leverage the odds in your favor, and you can go with the best accepted offer.
1 vote
Tamara Dorirs, Agent, Carmichael, CA
Wed Mar 11, 2009
Remembering that each asset manager (bank) is different and that many are outside of California, there is no exact answer to your question. I just showed a property that went into MLS with a 4-day deadline to submit offers. In this case, the bank is clearly looking for a quick sale and in my opinion, it had priced the property correctly. In other cases, there are plenty of foreclosed properties that have been sitting on the market for quite awhile.

Because nothing is sealed contractually until the addendum from the bank is signed by the buyer, I'm seeing the additional case of buyers walking away (perhaps a change of heart or inspections that revealed higher costs than they were prepared to put out). All that said, there is no set standard in the time-factor for REO properties being exposed, available or accepted.

Hope that helps!
Tamara D.
tamara2@surewest.net
Web Reference:  http://www.tamarad.com
0 votes
Mc, , Sacramento, CA
Tue Mar 10, 2009
I forgot to mention, I wanted to know about Deutsche Bank in particular.
0 votes
Jim Walker, Agent, Carmichael, CA
Tue Mar 10, 2009
Sometimes it does, but not always. Remember, every bank, every asset manager, every listing agent has their own standard operations procedures manual. What is SOP on one house is not S.O.P. on the next.

The scenario you described is common but not ubiquitous.
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