I was wondering if anyone could point me to a good write up on the steps to take once your offer on an REO has been accepted. This is my first time and I am trying to be as careful as possible. Where could I potentially get screwed, what could potentially delay closing, what should I be doing proactively? All of this is beyond the normal home purchasing stuff which I am aware of.
I have been searching but get a lot of generic "how to get your offer accepted" articles which I have not found to be terribly helpful.
This is completely the same as the normal home purchasing stuff...you are purchasing a home! the only difference is who the seller is. Your post asks what to do AFTER the offer is accepted and after the offer is accepted, its the exact same as a "normal home purchase".
If what you really meant was, "how do I get my offer accepted"? Ask your agent. We look for highest and best offer which is RARELY the one with the highest purchase price offer. It's a combination of purchase price and closing schedule and contingency removals, etc.. Ask for the moon and we will tell you to get bent (Seller concessions, inspections, warranties, credits, etc..). Come to us with a cash offer and a 15 day close? You'll get a lot of attention provided the purchase price you are offering is within acceptable paramaters of our fair market value.
Trust me on this...we know what it's worth more than you or your agent does 99% of the time so, lowballing us or pointing out deficiencies to try to justify your offer (Deficiencies we are well aware of) won't always accomplish your objective. The days of "it's not worth as much due to the REO stigma" are over.
Thanks a lot for that info Ron. I assumed everything was the same but I wanted to be positive.
When you say we or us, who are you referring to? Are you an agent that sells REO's or do you work for a bank or holding company? I'm just curious whose perspective I am getting.
Read your contract, and more importantly the REO addendum. Stay on top of the timelines spelled out. As long as the bank can produce good title, no worries. But do expect some delays/miscommunications with the bank's closing co. Customer service and efficiency are not usually their strong points.
@ Wayne - I resemble that remark!!!!
@ Paul - I manage REO for a bank.
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