fixed price of an reo

[drifter957]

is the price of an reo fixed from the the bank or can the agents have people make offers as in more money and more for the escrow .im  finding that agents are wanting me to compete for reos this way with other buyers .

[investorman]

There is no fixed price. You can make a lower offer and see if the bank accepts it , just like with any seller.  This seems to be common nowadays in many areas on REO properties. Agents often try to start bidding wars to get people to overpay for a property...don't get  attached to any property and make sure you don't over pay.

It is in the banks (and the agents best interest) to get the highest and best offer.  Of course the bank is not going to turn down an offer for more money.

But many people are also stating that banks are accepting lower offers that are all cash and little or no contingencies versus offers where the buyer will be getting a loan.

[drifter957]

thanks, is it common for them to ask for escrow money to start the process ?
im being told that i have to give them a check for 5 percent or more to put in escrow and will be applied to the purchase price but after i give this money i have five days to inspect the home ,and determine if it is satisfactory .i want toget the property under contract then advertise and sell the house for a profit.



thanks ,the newbie

[C_A_L]

drifter957,

I am pretty sure you cannot assign a contract on an REO property. You will have to do a double closing if you want to wholesale it to someone right away. I hold all of my properties for rental, so I may be off base on this.

[DJP]

thanks, is it common for them to ask for escrow money to start the process ?
im being told that i have to give them a check for 5 percent or more to put in escrow and will be applied to the purchase price but after i give this money i have five days to inspect the home ,and determine if it is satisfactory .i want toget the property under contract then advertise and sell the house for a profit.

The cleanest offer with the most earnest $ (w/POF) will be most attractive ANY seller.
You'll have a period in which you can walk your end buyers through the property (need to double close) as the lender will typically always counter with additional language (if you even get a response from them).  You need to build your buyer's list first and know their criteria for what, where, how much, etc..