REO's at list price

Couple of things here.
You are probably right about the wholesalers seeing the same house at the same price you are seeing them at, but, if you heard Indiana Joe's empowering conversation tape and he he bought an REO for 10k which was way under what the bank wanted.
Hey, take a shot. Worse case is the bank takes your offer for 10k and you have a house worth 85k. You could do some minor repairs to get it ready to rent out. This way you are not holding on to a empty house with no cash coming in. when the market goes back up (key word here is WHEN), then you sell it or lease/option the prop.
Doesn't sound like a bad deal if you have the $$ to buy it......Jan

Jan makes great points. I have yet to experience a bank rep have me arrested or beat me over the head with a bat for making an offer on a REO that was low. Then again, I am a newbie here. The worst a bank can do is say "no". Dean makes the point over and over to "lock up the property". Even if you contract for full price, offer it to buyers and if they say "I saw that property for $XX", as long as you "leave enough meat on the bone" for the investor, you could tell them that you did all the legwork/paperwork which saved them time. Sometimes I see REO's that are such a great deal get bid up in bidding wars. Ask "isn't your time worth $5k?" Just be careful assigning REO's as some bank's use their own contracts and are very strict.

First of all we don't want your nerves shot Relax!!!

I suggest that you offer 30% below what the REO is listed for. Even though it is listed at a certain price you don't know what they will take. Also you want to be able to offer the property below the listed price to your buyers. Remember you are wholesaling which means wholesale prices. If you offer the property to your buyer at the retail list price or above you are actually offering it at retail price not wholesale price.

Good luck!

I found a protential REO house listed under a listing agent, then also found it under Bank represented agent.

In this case, should I submit my offer thru listing agent or to the bank represented agent?

thanks,
Kathy

This is called co-agency. Not all states allow this. Selling decisions are made by the same person or persons, so it should make no differance who you make your offer through.

Thanks alchristmann!

But, one thing I notice, does this mean the REO protperties the Bank offer also make this public, so other agents can list it as well? I just found another agent site listed the same property I'm interest in. A bit confuse here.

-Kathy

Some states allow this. We can not do this in Arizona.

I say the banks are showing great motivation, so offer lower and see what happens.

I say go for it and you'll find out if they take the lower offer. In my area there are tons of REO's and when I was looking for my first flip, there were also lots of investors trying to get the best deal, so most of the banks do not go below the list price. (Not saying won't) I found the competition so high here that you had to get your bid in before the week-end, otherwise the bank would have accepted another offer already. You might want to look at how long it's been on the market. That will make a difference.

I also know from buying an REO that most banks write it into the contract that it cannot be assigned. And when you're in an area where there are tons of REO's, you can't sell very high either (the finished flip). The retail buyers out there are also looking at the low prices. This is what I'm going through right now with my house.

Thanks for your input.I was thinking the same thing.I met with the agent and saw three today,but all were in "should be condemned"condition.Bad neighborhood well im back at and good luck everyone.

Yeah I know I'd have to do a double close on bank owned property's.
Thats my situation too,all the investors are alover the reo's.anything that is a good deal has multiple offer's. Im going to ask for only listings 90 days old or older and keep working fsbo's

Kingjuss, yes I plan to offer 30% below the asking price then work it up as necessary.

mbjoseph,
This particular REO has been on market since last Nov. if I remember correctly.
On top of it, the asking price has been drop at least two times since I've beent tracking it. Thanks for reminding me to check if the bank disallow for assignment, else I'll have to do double closing on this one.

I'm getting exciting here since this could be my first deal. Wish me luck!

Kathy =)