for REO Property Offers - Is this a Scam?

4 Replies

So I made an offer on a REO property being represented by a realtor that I found through Zillow. He told me the bank that owned the property, provided a contract template, and I filled it out and provided an offer. Today, AFTER the offer, he tells me that he submitted it to the bank via and that there will be a $300 fee to the Buyer (me) at closing for doing so.

This seems insane to me. He knows who the bank is, but he has to put my emailed PDF offer in a special website to send it in so that I get charged $300?

Does anybody have any experience with this and can tell me what is going on? Thanks!

Yep, I'm closing on a REO next week (PNC Bank) for a buyer, going thru, and that fee is being charged to the buyer. Our "offer/negotiations" were all done online, until we had an accepted offer. Then, we filled out our standard contract, with bank mandated changes, and the bank's specific addendums. It's a platform the bank decided to use, for their own reasons, and you either use it or you walk away.

Wayne- thanks. Two more questions if you can help. 

1. If I submit one offer, they counter, and I submit another offer- do I pay $600? Or is it only $300, one time, at closing?

2. Did the listing agent tell you this before you submitted the offer? Mine didn't and waited until I after I sent the offer in. (Grr)

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It's just $300 for the entire transaction. The fee was disclosed in the MLS, but also disclosed and had to be acknowledged, as I, the Buyer's agent, entered the offer numbers and conditions into their online system. Someone should have told you, yes. By the way, since I as the Buyer's agent entered the offer online, this prevents the listing agent from shopping/delaying offers, which is one reason the banks use them.

Thanks- I feel reassured I am not being scammed, and I appreciate that you are doing your job. The person who showed the property (not really "my" realtor, as I have been handling this all my self) doesn't seem to have his act terribly well together.

The price in the MLS (via Zillow, where I found it) is also waaay out of touch with the market. This is a REO with a listing price 32% above the last market transaction in a mf property over 50 years old. I expect I will be submitting multiple follow-up lower offers until they get the point.