My wife and I saw An REO home on Zillow and other sites located in South Carolina on the Intracoastal Waterway. We looked at it for a couple of weeks online. We drove out to the home and love the location. It is waterfront, 3008 sq ft, 4/4 and the home estimate on all of the sites / tax value is $340,000. The new empty lot beside of the home is for sale at $130,000. All of the homes beside of this home is valued at $300,000 to $450,000.
Here's the deal: Someone got mad and hit most of the walls with a hammer, broke a few windows and messed up the septic drain-field lines, by letting someone back over the yard with a huge truck or maybe tractor, who knows? So, people go to the home and see the holes in the walls and open septic tank that looks like a construction project and then just drive away.
Since I am a licensed Plumber, and tear out and repair walls daily, I can repair the drain-field lines, drywall, windows, paint the home, and do 90 percent of any repairs by myself. That's all I have ever done for 30 years. It will just take some sweat, tools, my tractor and trucks, but not a lot of money.
The home was $199,999 this past Tuesday. We put in an offer of $150,000 cash. When I woke up Friday morning the new price on Zillow and other sites was $147,999 and my agent told me that we need to put in a new higher offer fast because the cutoff will be 2:00 pm Friday evening, so I shot the offer up to $170,200. As I look today, right now, the home is still for sale on all of the websites and it says that they are taking offers. This is the first time that I have ever placed an offer on an REO. It seems more like I am buying an expensive lottery ticket and the cutoff time is not a real cutoff time at all. It is bluff, bluff, and more bluffing from the bank. Is this normal?
I mean, the home has a potential of maybe $340,000 from everything that I have been told, seen, and read. I bidded $170,200 thinking that all bidding will stop on 2:00 pm Friday, according to the bank, but it looks like the bidding is still going strong online. I have no idea how these REO's or the banks operate, do you? Why is it still for sale all over the internet today if bidding was supposed to be over already? Is this what all banks do?
what site are you bidding thru. Some like auction.com set reserve prices.if your agent is submitting offer to bank then you would get a counter offer
Those sites you are looking at are not up to date. Your agent, with the listing agent, will be the best source.
Unless you are bidding on a website like auction.com or hubzu, you're not seeing real time info.
What lender is selling it?
Mark Gallagher, Real Estate Agent in New Jersey (#1221341) and Pennsylvania (#RS314542)
I have bought 2 REO's and in both cases I closed around a year after I saw the original listing and around 40% less than original asking price.
I always deal directly with the listing agent and make sure they know that I have no other realtor and they will not have to split the commission. Also provide a bank statement showing the money you need to purchase the property for cash with the offer.
Don't be under impression that the bank will not take any offers after your offer is accepted. I have seen the bank drop the asking close to my offer and kept accepting backup offers.
If I were you I would reach out to listing agent and ask whether they got the offer you have placed or your agent is holding on to it knowing you will still increase the offer.
If the bank is serious about selling the property your offer should get a counter offer from bank within 2-3 days after they receive your offer.
my gf who bids on these things says they hold them open. I haven't so I'm passing along 3rd part news. But they started a bidding war and did exactly what they wanted to do: hiked the price up. Good luck to you.
I am not bidding through a site. I contacted the listing agent. She told me to call a local agent in my town, so I did. The listing agent's husband died last week, so you can imagine her state of mind, so I am working with the Realtor that she told me to call. I guess they will split the 6%. On the online Realty sites, not one of them mention that the septic system has been shut down by the county and needs to be replaced, or mentions anything about how much damage is in the home. I am bidding against people who have no idea about the magnitude of the damage. There is a lot of damage. My guess is that it will take my wife and I at least 4 months to repair the problems. I will not bid a penny more for this home due to the amount of work and permits that I will need to purchase. It is gonna be a red tape pain in the butt already. If the bank would reveal the actual home damage with photos, we would not have so much competition, As a plumber, I have gone to many homes where people have purchased their home "site unseen". They have no idea what they are getting into at all. Due to this, our venture as new home flippers, that we started this past week for the very first time, will be pretty difficult.
@Mike Lynch , any update? Did you cancel or followed through?
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