Realtor Listed REO's

[ScottC]

Anyone bought reo property listed with agents?

Is it worth the effort and are there deals to be had?

Any experiences or opinions would be helpful.

Thanks in advance,

ScottC

[tedjr]

A good deal is realitive. In the mid 80's we found all kinds of good deals with Realtors and REO's when we were buying duplexes and houses to keep as rentals. We could buy for $30 and rent for rent for $800 to $1000. I do not think we could have resold them at much higher prices.

Today the rental market and sales prices do not match up like they did then. I am not sure where to find really good deals that can be resold for a profit. I did a pre foreclosure last year and am just now selling it for a $20,000 loss. At the time the numbers worked for a $20,000 to $30,000 profit but after 14 months at $1700 per month and a $20,000 reduction in price I am loosing and a bit fustrated. I am keeping a my chin up and I know other investors are doing super.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[averykc]

Hey Scott,

I've done a little bit of work with REO realtors. My experience so far has been that banks price houses to target owner-occupants who can do a bit of fix up and will be thrilled to get a discount rather than investors who require a larger discount.  Can't blame them for trying to get the most they can out if it.

So, in most cases, I have found that these properties are listed for a small discount off retail. I make offers for the amount I need, and most of the time they counter at asking price or don't even respond.  It seems that once in a while though, they will have a property for months and months, or one that they can't keep under contract, and they will negotiate on those just to get rid of them.

Just my .02,

Avery

[WilliamGA]

Scott,

My experience has been that for the most part, REO properties go for close to top of the market.

I have made dozens of offers in the past and have actually only gotten a few to deal with me. Most are very unrealistic and hold out for a retail buyer with handyman skills.

Stick to finding motivated sellers who are ready to deal and don't have to submit your offer to a committee.