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5 ways to make banks say yes to your REO offer in Oakland today!, by Kenneth Session.
By Kenneth Session
5 Ways to Make Banks Say yes to your REO Offer in Oakland today!
REOs provide a perfect way of getting into real estate investment at a low cost. REO properties are properties that a bank fails to sell during the foreclosure auction. The bank takes ownership of them, and an REO agent within the bank is given a mandate over them and is responsible for finding a local agent who will sell the property on the bank’s behalf.
These kinds of properties are nonprofiting to the bank, and they are essentially “money-sucks.” And because of this reason, banks are usually very motivated to make a fast sale to dispose of them. They are usually priced very low as the bank tries to recoup money lent to the defaulter of the mortgage. Since the properties are “cheap,” be prepared to face a lot of competition. If you are interested in making the bank an offer, you should stand out. Here’s how:
1. OFFER A QUICK CLOSING.
Remember that the bank wants to rid itself of the property and is a very motivated seller. As so, make the smart move of making an offer based on the closing date. Typically, the closing dates ran up to thirty days but could be shorter. To stand out, offer to close within five days or a week. It is unlikely that the process will take that short amount of time, but it will let the bank know that you are serious about buying the property.
2. WAIVE ALL CONTINGENCY.
This is a risky one but entices the bank to your offer.
Unlike the normal buying process where the seller can offer to make repairs on a home, banks don’t repair REO properties. And for that fact only, some buyers are put off from making an offer. If you decide to go down this route, make sure that the property you wish to buy has a greater chance of making a profit than the risk it comes with it. It is also important to remember that there is wiggle room for negotiations since the bank is eager to make a quick sale.
3. OFFER IN CASH.
A buyer who offers to pay in cash beats any other buyer offering a higher amount to be paid through financing. Paying in cash by far supersedes any waiver of contingencies. No bank will pass up a cash offer!
4. MAKE YOUR OFFER STAND
OUT.
Go big or go home. Make an offer that draws attention to your offer. You could offer an odd number, such as $150,568 instead of the usual $150,000. Additionally, you can offer to split fees with the bank. The bank will be interested in an offer where the buyer is willing to split transfer fees, escrow fees, and title insurance fees. You could also shorten the inspection period if you decide to do one- go below what other buyers are offering.
5. HAVE A PREAPPROVAL
LETTER.
When making an offer, be fully prepared and submit a preapproval letter. A prequalification letter won’t cut it if you are to win a bid. This is because if you later discover that you can’t finance the mortgage, you will have wasted valuable market time for the bank. On top of this, consider getting one from the bank from whom you are buying the property. To be clear, you do not need to get a loan from them, but banks tend to trust their departments more.
REOs offer great returns and come at a low cost. However, it is important to conduct a market analysis before getting one. Ask around what properties around the area go for, find out what the previous owner got it for and how much the bank is listing the property for. Considering these factors will go a long way in helping you figure out whether the investment is right for you. When you are considering investing in REO, you need to make an informed decision and to do so alone may cost you. Play it safe and contact our reliable real estate agents, mortgage consultants and brokers at www.thepowerisnow. com . Alternatively reach out to Kenny Session at https://www. thepowerisnow.com/kennethsession-2/ and get your offer accepted!
ABOUT THE AUTHOR.
Kenny Session, is a veteran Real Estate agent with over 28 years of continuous years Real Estate Service in the Bay Area. Kenny has served the President of Oakland,s Associated Real Property Brokers (ARPB), and President of The California Association of Real Estate Brokers (CAREB). He is a highly sought-after real estate speaker, and one of the highlights of his vast career in real estate is PRODUCER & HOST of the popular “In Session Real Estate TV Show”. The show airs every Saturday morning @ 8:30am on KOFY TV Channel 20. To see previously aired shows, visit Session Real Estate’s Youtube page.
ABOUT THE POWER IS NOW MEDIA INC.
The Power Is Now Media Inc. is an advocate for the empowerment of the minority communities all over the United States. We engage with various thought leaders to make sure that you are equipped with knowledge about our economy. We have partnered with First Bank to provide you with products and services that will help you prepare better for the future. We are also advocating for first-time home buyers. The Power Is Now Media Inc. can help your home ownership dream a reality. Go to www. neverrentagain.com and get started today.
Eric Lawrence Frazier MBA DRE, Vice President and Mortgage Advisor of First Bank, NMLS 461807 President and CEO of The Power Is Now Media Inc. www.thepowerisnow.com
Sources https://www.thebalance.com/winning-reo-foreclosure-offers-1798483 https://www.fortunebuilders.com/reo-offer/
Frazier Group Realty Inc.
3739 Sixth Street Riverside, CA 92501
www.fraziergrouprealty.com rubyfrazier@fraziergrouprealty.com O: (951) 686-5261 F: (714) 908-7298 Lic# 01751773
