OfflineHi everyone. Lately I have made a lot of offers on REO's using the formulas but may of the coaches here and finding that most of them are getting pasted over for higher offers. Some are even selling for asking or over asking price. Is anyone else having this issue and what are you doing about it.
Thanks,
John
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Hi John,
I would focus on motivated FSBO's instead.
REO's present a host of challenges. You'll need real POF with an accepted offer. You'll need a sizable cashier's check for earnest money deposit. They also put a lot of restrictions such as cannot assign and deed restrictions stating you cannot resell within so many days (typically 90).
Hope that helps and good luck!
- Tom
I've been having the same problem for that last year. I know Matt Larson says to bump up your offers if your not getting non accepted after 25 offers submitted. I bumped my offers to 15% of asking price, its still hard to get an offer accepted. I asked my agent why are no offers getting accepted and she told me a lot of properties in my areas are going for asking price or over asking price. I guess where Im at in Connecticut the market is getting competitive and probable a lot of speculative buyers are jumping in. So whats working for me best are my bandit signs, I'm getting many leads from them and I'm just going to work the bandit sign strategy even more.
Reynold Orozco
I get stuck with earnest money part. POF from transactional funding takes care of thePOF. But I know REO properties are already discounted. I think that's why some or most of the properties are going for asking price or above. So I figured, I make an offer, CASH of course, tell them close in two to four weeks, and put a little more or alot of the min earnest money. Wwwwhhhooooowwwiiiiiii!!! Three offers accepted in one month, and double close.
Hope this helps you a little. I just tweeked it a bit.
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