patrick.net

I guess it depends on the market/area. In our place, your inspection contingent offer won't even get considered for a deeply discounted REO. And those houses are always sold AS-IS. The only thing I can do is to discount those possible fixes in my offer price. If they don't accept it, leave a note to let them call you when they are ready.

If I can get a discount for mold, there must be something else others have experienced?

Hello!!!! Calling all savvy reo buyers, please reply.

try getting an 'aggressive' chimney inspection by a dedicated chimney inspector.

try getting an 'aggressive' HVAC inpection by a dedicated HVAC inspector.

Its best if the inspectors doing the inspecting also are making a bid to do the 'repair work'.

Also do not forget drainage and slope issues (geology or whatever its called inspection).

I sold a house and the buyers raked me over coals after a chimney/hvac inspection (i ended up giving them 10k off price, but they were 2006 buyers so joke is on them! ha!)

Of course 'mold' is the first go to issue to try to get lowball accepted and/or get repair credit in escrow.

It really depends on the price. If the price is well below average, they won't give a damn on inspection and will sell it AS-IS since they can always find another buyer. My suggestion is to low ball the property who sits on the market too long b/c listing price too high.

PockyClipsNow says

(i ended up giving them 10k off price, but they were 2006 buyers so joke is on them! ha!)

Cold blooded, lol

APOCALYPSEFUCK is Tony Manero says

Run scans of lis pedens and foreclosures for the whole county for the past year by grantee - the lender who gets the mortgage's lien. Local well-run bank with a couple can weather them through. Bank with a lot of red ink ready to explode on its books may be more willing to talk to someone with cash. Track down the bank's REO officer and make friends and show him your bank balance. This is just a much more honest version of Realtors® flopping properties and screwing the banks outright. I know, it couldn't happen to a nicer crowd but still the REO officer would rather a property go and become a stable home again instead of a blight that neighbors point to and blame on the bank.

I was going to ask if you were feeling ok,

until:

And remember, when you settle direct, a fucking Realtor® starves to death in the dark, cursing you and the rats and homeless dogs eating his face.

What is this bidding, then finding something wrong? You're supposed to bid assuming things are broken. It's bidding against people like you that jacks the prices up.

APOCALYPSEFUCK is Tony Manero says

Track down the bank's REO officer

How do you do this?

Let's say I find a vacant REO and I know which bank owns it but it is not listed. How do I find the right person at that bank who knows about that particular property?

No one seems to be able to answer this question....

bighorse says

What is this bidding, then finding something wrong? You're supposed to bid assuming things are broken. It's bidding against people like you that jacks the prices up.

Well, every buyer for their own. The bank asks for highest and best. I am trying to get a good deal even better if the market drops a bit more. Since you have to be on top to win the contract to buy, why not try to get it marked back down a bit?

If you know of any ideas please add them here.

ptiemann says

Bidding "high" and afterwards negotiating down for "defects" will get you a reputation.

That doesn't matter much. I am working with whomever can actually help get me the property. I am not really a 'big investor'. Just trying to negotiate the best deal I can. My money will only stretch so far so I was hoping anyone who had experience negotiating during inspection of REO could give me the inside trickery.

APOCALYPSEFUCK is Tony Manero says

And remember, when you settle direct, a fucking Realtor® starves to death in the dark, cursing you and the rats and homeless dogs eating his face.

Do you regularly take your doggy to open houses for supper?

Maybe you had the better offer because you could actually get the dough. Or maybe he dropped out or was fictitious. Banks want as much as they can get.

APOCALYPSEFUCK is Tony Manero says

Fluffycakes gets a standing O whenever he starts chewing the Realtor®'s face.

It's snack time,fluffy!!

ptiemann says

Bidding "high" and afterwards negotiating down for "defects" will get you a reputation.
You may be successful with this tactic once, if you are lucky. Chances are, the bank had multiple offers and once you ask for credits, they just sell to the next guy.
At least in Santa Clara you won't be able to buy repeatedly from the same agent if you are known to negotiate after going in contract.

Interesting. I know that this "tactic" of bidding high to get in the door and negotiating down has become common practice on REO's these days.

In the past 4 months I've bid above asking price several times only to be beat out, and this could be a very good reason why... And when the final sale numbers are released to the public, I am discovering that my offer was actually higher. This could be because of the tactic, a higher downpayment despite lower overall offer, or familiarity with the buyer or buyer's representatives. Despite a down market, it's still not easy to acquire sometimes...

If you are not playing the game are you getting left behind?