How to Get More of Your REO Offers Accepted

By · Friday, June 27th, 2008

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1. Properly complete all your paperwork. Follow the specific banks policies. Type or print offer. Your offer must be completely legible. Also, always indicate on the cover sheet and in the offer if your client is buying as an owner occupant or 1st time home buyer.

2. Make sure to read agent to agent remarks in the MLS for specific requirements. Follow the requirements to the letter. This is an opportunity to out-shine other agents. The sales agent who clearly follows procedures will increase their chances of acceptance.  

3. Make your best offer first.  Include the highest earnest deposit.  Protect your buyer from overpaying; however, you need to be realistic as well. Know the value of a home in today’s marketplace to ensure your client is comfortable with the purchase price.

4. Send a loan pre-approval letter or proof of funds with your offer.  You want to make the other agent as well as the bank as comfortable as possible in accepting your offer.  Keep in mind that some banks will make it mandatory that your client at least pre-qualify with their loan officer.  This is a must!  However, your client is under no obligation to utilize them for their loan. 

5. Allow at least 1 week for a response back from the listing agent regarding banks acceptance, counter or rejection. It may take longer or you may never hear anything at all. You will end up working more often with the agents who continually keep you in the communication loop.

6. Banks produce 2 appraisals when dealing with an REO property.  A traditional appraisal as well as a liquidation appraisal. They are most often listing their properties at the liquidation value to increase activity. This ploy will not matter if you just come in with your “best offer first” if another buyer is willing to overpay let them. 

7. Feel free to write numerous offers at the same time on different properties for your buyer. This will increase the chances of your buyer winning a bid as well as place them in a position of strength. When an acceptance finally comes on a particular property it will be subject to other addendums that your client will need to approve prior to moving forward.

8. Utilize current dated earnest money checks.  When you use stale dated checks it is a clear sign that you have been writing offers on properties for a while.  

9. Clearly spell out any closing costs or down payment assistance that your buyer is requesting.  Break all items down so there is no question where each dollar is going.

10. Communicate this entire process to your buyer. Helping your buyer fully understand the process will reduce both your and their frustration and lay the ground work for a smoother transaction. 

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Comments

Enjoyed your blog! Thanks

By prescottforeclosures on February 4th, 2009 at 4:38 pm

You’ve got some great tips here that my buyers in the Prescott AZ area can use. Thanks for posting!

🙂 PS

http:/blog.prescott-area-foreclosures.com

 

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