Although there is never any guarantee that an offer you make on a bank-owned REO, or “real estate owned,” property will pass muster, you can take steps to tilt the odds in your favor. Here are five tips for getting an REO offer accepted.
Make sure to have all your ducks in a row before making an offerA real estate agent can help you put together a comprehensive, easy-to-understand, professional purchase offer. You must think beyond the idea that you’re going to get the property at a “steal.” The most successful offers take into account the interests of the buyers and the lender.
Offer a large earnest depositLet’s face it, cash talks. You want the lender to know that you’re serious about buying their property.
If at all possible, make a cash offerIn an effort to get the REO off their books as quickly as possible, a lender may accept a lower-priced cash offer rather than risk all the things that can go wrong with a bank loan — even if that offer was higher.
Take a pass on the inspection contingencyA lender is aware that repossessed property often comes to them in a less-than-stellar state. Knowing that they won’t be responsible for needed repairs will be an attractive bonus.
Offer a quick closing dateLenders don’t want to hold on to REOs any longer than necessary. Give a lender the opportunity to take it off the books by offering to close quickly.