All Forum Posts by: Mel Lobo

How much commission should your RE Agent take for your REO transaction with the bank?

A. As little as possible - Money saved is money earned
B. Full commission - A great job deserves a great reward
C. Zero - Get an RE broker licence, transactions are easy
D. Don't worry - There's always an agent on the other side

I realized, there are many folks out there who have questions but are shy...So am starting this trivia where you learn tons of stuff, and you know where you stand. Please post your questions/trivia in this thread with 3 options like below. Kindly answer the questions to the best of your ability.

Which offer will the bank pick from below for a Bay Area house in good condition listed at 400K?

A. 390K, 2 contingencies, structural and mortgage
B. 380K, 1 structural contingency
C. 370K, Zero contingencies

I'm assuming, REO holders prefer offers with zero contingencies.

Do you think its ok to waive the 'structural' contingency if you've seen the house and is in good shape?

Which offer will they pick from below for a bay area house in good condition listed at 400K?

1. 390K, 2 contingencies, structural and mortgage
2. 380K, 1 structural contingency
3. 370K, Zero contingencies

So far, all I've heard here is, if you're buying a rental property, then an LLC helps.

Can we expand the discussion slightly to talk about single family houses also? Say I'm planning to buy 3 or 4 houses (one by one). Live in one and may be rent one. Others may be vacant. Does the LLC help this scenario also? How?

And then there's the Bay Area....

Lots of land for development...prices are high too... :violin:

Its a bit of a Hail Mary though!

What should I do if I get an REO address along with the Bank name? At this point, an agent has not been assigned to that property.

Should I call up redfin.com (who gives 2/3 commision back to me tax free)?
OR should I wait till an agent is assigned to it?

Happy to correct you Clyde....

The word is accept....not except. :beer:

Ah! Thanks...

I looked but did not find any rules on CA transfer taxes...

Can you enlighten us?

I have seen some listings being very clear saying "buyer will bear both sides' transfer taxes".

Good point on the "cash has to be close to the non-cash offer". Don't forget the area in which you're buying...

If its a hot area, like the bay area, the cash would need to be close to the non-cash counterpart. Banks are very confident (at least right now) that the property will sell just fine for the higher offer.

There are just too many buyers in the market, some good, most of them bad. :lol:

I guess, things are too simplified in the market right now. At least the bay area (which is a hot area), my real estate agent does not allow me to low-ball REOs.
For e.g. He's tracking an 8 yr old single family home in Dublin,CA which came down from 750K to 650K. Inspite of this, he says, we should put in an offer for 600K.

How bad is the market? and most important...Is this the worst for the Banks? How much lower should my offer be wrt the list price?

My research tells me, my agent is somewhat correct, its not hopeless in the bay area....Will it get worse? I'm pretty sure, in a year or 2, a similar SF home will be listed for 550k and banks will accept offers for 450K...

Am I dreaming here?