MLS Offers

[Chris C]

OK, I took the plunge..Made 3 Offers on MLS properties all 3 Bank Owned.. First realtor put the offers together and sent contracts to me to sign along with an email comment that don't expect the offers to be accepted and don't expect counters..

The other Realtor laughed at me when I gave her the offers over the phone....She said she is selling 20-25 REO propertiers monthly at an average of 85% of asking price....She said she would make verbale offers.

Here is what the deals looked like.. First house ARV..115K if I want to take a yr to market...Quick sale after rehab 89,900..Needs 12K+ in rehab listed for 79,900 I offered 47,500...2nd again quick sale 89,900, listed for 69,500 needs Min 22K in rehab. I offered 37,500, 3rd Quick saled 85,000 listed for 64,900 needs 12-15K in rehab I offered 37,500..

Couple of questions: Am I putting offers in that are to low? Do I need to make more realistic offers? Am I using the wrong Realtor? (Used listing Realtor on all 3). All 3 of these properties could be sold for more that I have shown but I am looking for a quick sale no long term wait. Also I am using Hard Money @ 65% LTV.

Advise please...I would like to hear from the Pro's that are making offers on MLS properties... What can I do to inprove my odds?

Thanks In Advance!!!!!

[Kathy Utiss]

In your situation I think of it this way. The bank has already taken the asset back into their holding category by making it an reo property. Usually this means they've already done the dd to know what repair costs and such will be.

While you think because they have it as an reo and it needs repairs that they'll let it go for cheap. This isn't always the case. Your in one of the more popular counties/areas of the country home to PENSACOLA FL.

While home values are plummeting there some still have made equity positions on their purchases while others are losing their shirts.

While it's always the investor wanting to maximize their dollars remember who owns the asset. Have you given correct assumptions about the houses to demand such a discount? They've already taken the expense to control asset again. So them being the asset owner are looking to maximize their return.

Is the discount requested whose best interests does it serve your's or theirs? How can you make it more beneficial to really make it a deal worth happening or not? There's two sides and we've all got ours. Would the deal still be beneficial to you if you didn't have such a large cut into transaction? Are you looking to buy and hold for rental income? Or buy and sell trying to optimize $$$ in your best interest only?

I know sometimes you really have to show them in a full analysis why your proposal beats theirs. Then maybe even a couple of face slappings to wake someone above them up but if u don't try to succeed you may never.

Give them real analysis work and it does happen. I mean no personal attacks by anything stated above honestly. I just know both sides very well. And I believe if you can get someone to be intelligent there's a lot of money to be made.

Maybe also instead of dealing with real estate agent do your own research and deal with owner directly. Let them worry about what they have to do with their Realtor. Their in contract with them not you. If you have to end up paying them so be it...But get direct communication so there's no miscommunication.

Best of Luck,

Kathy