Throughout the last two years, if you haven't been living under a rock then you know that the real estate market is being flooded by distressed properties, whether in the form of short sales or bank owned foreclosures- also termed REO's. These REOs are generally listed for about 10-15% under market value and immediately steal the attention of innocent buyers, who are looking to make there typical offers, and investors alike. Unfortunately, in most cases the property sells at a considerably higher amount than the asking price. For example, the beautiful Verdugo Woodlands property listed on 1649 Opechee in Glendale, CA 91208 is pending (WITHIN 4 days!!) and the little Squirrels in the Pine Trees have told me that the offer accepted is ALL CASH vs. the 11 other offers that were submitted to the lender, including one that had a higher offered price than the cash offer.
Green World's Tips to Bidding and buying REOs
1. Write an offer within the first day. Sometimes if there are no other offers during the next few days, your offer and your's alone will be submitted to the lender. Rare and Pleasant Situation.
2. Write a strong offer (close to or above asking price) with as much down payment as is financially comfortable for you (FHA is not going to get it done, unfortunately.)
3. Don't place your highest and best offer if there is a lot of activity on the property, initially since if you are in the top couple of offers. You will be countered by the seller to Highest and Best.
4. Price your offer with the consideration that the lender will not be making any repairs and most likely will not consider any price reductions since most are sold AS IS.
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