How to Make an Attractive REO Offer - By: A. Myers Kennedy

There is no doubt that you’ve heard the news, but now is an excellent time to find and buy affordable real estate with Real Estate Owned (REO) properties and short sale properties topping the list of great deals to be had. As the availability and popularity of REO purchases grows, so does the competition buyers are finding when it comes time to talk negotiations with the bank and knowing how to make an attractive REO offer is the best way to get your offer to the top of the lender’s pile.
One trick to getting your foot in the door fast, when purchasing REO properties from banks, is to talk cash. If you are able to make a cash offer or an offer that is accompanied by a line of credit as proof of funds, then you are going to find that you make a lot more successful transactions than if you make an REO offer that is accompanied by a pre-qualification or pre-approval letter for a loan. A lot of first time buyers in the REO arena are surprised to find that their offers were not only passed over by lenders, but that the winner of the property actually paid less than their non-cash offer-just another reminder that the highest REO offer is not always the best REO offer.
Another tip for making an irresistible REO offer is to put down a large earnest money deposit. The more serious you show the property holder that you are about this deal, the more seriously they will take your offer. Consider putting down at least 20% or $5000 on most properties. If this is too far out of your financial grasp, it is still important to make the largest possible cash deposit with your REO offer that you are able to make. You are probably going up against some competition for a property and having a solid cash deposit will definitely make your REO offer stand out from the crowd.
Avoiding the nit-picking is another way to make the best REO offer that will keep the attention of the bank selling the property. All REO properties are sold in “as-is” condition and there isn’t much room when it comes to negotiations on real estate owned properties. Dropping inspection contingencies from your contract is yet another way to say that you are a serious buyer and that you want this property. There are a lot of banks that require such contingencies in their contracts, but there are some that will appreciate your due-diligence as well.
There are no guarantees that your REO offer will be accepted, but these tips and tricks will definitely help to sweeten the deal you are offering. Whether you are trying to get a discount on a real estate owned property or if you want to make a great offer on a REO listing that just hit the market, following any of these tips will help the lender see that you are a serious REO buyer. Enlisting the services of an experience REO real estate agent will also add to the list of tips to getting your REO offer accepted as most REO agents have previous experience with local lenders and know other deal makers they look for in offers on their bank owned properties.

About the Author

Trent Realty has an extensive list of REO listings in Florida. If you are looking for bank owned properties or need an experienced REO real estate agent, visit the Trent Realty website to get help making your REO offer.

Article Directory Source: http://www.articlerich.com/profile/A--Myers-Kennedy/58204

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