Looking at an REO.... Help!!!!

3 Replies

Hello all,

I'm just looking for a little advice and I know that the Bigger Pockets network will have some great stuff for me :)  My wife and I just went and looked at a house that is bank owned. It has been vacant for 2 years, basically needs everything done cosmetically and who know what else after an inspection. We love the potential and would like to move forward in the process, but can't get anywhere with the selling agent/bank. Automated voicemail and offer process is online. We really don't feel comfortable even making an offer until we have an inspection and estimate reno cost. As it is listed at comp level of houses in the area that need no work done. 

Ultimately just at a loss as to what to do next. Any advice would be appreciated!

-Kyle

@Kyle Asher

Listing agents have giant staffs to deal with the gazillion properties assigned to them. They don't pick up the phone. They work for the bank or government entity.

If you want to put in an offer, you have to find a local agent that will submit it for you.

Are you paying cash? It's not easy to get a conventional or FHA loan on an REO. Sometimes you can get lucky and the place is in livable shape, but those are hard to come by. If it's been sitting around for 2 years, who knows how much of the plumbing and electrical might still be working.

Agreed, find a buyer’s agent to suvomit your offer.  Your offer will have an inspection period where you can opt out, or attempt to renegotiate....standard stuff.

I will echo what others have said on this thread already. Find an agent local to you that has experience representing buyers of REOs. 

Have them submit the offer for you and likely within the banks purchase and sale addendum there is a prescribed amount of time for an inspection. Make sure you are clear on whether the bank will allow you to put on the utilities for an inspection. Some do, some don't.