Some Truths about REO Inventory and AUCTIONS…..
I am a licensee in Las Vegas. Below you will find some truths about REO Inventory…..
- All Realtors have the same access to the same inventory. Many buyers think that some Realtors may have exclusive REO listings….not the case. Remember a list agent for the bank is acting in the best interest of his client/the bank. Do you think that it is in the best interest of the client/the bank to limit their exposure and to limit their greatest NET potential of an already non-performing asset/liability on the books??
- All REOs are listed on the MLS. The banks will disperse foreclosed properties to the asset managers. The asset manager will disperse these properties to licensees to list and sell with maximum MLS exposure for maximum seller NET.
- The banks are not selling to individuals whom are not represented by a Realtor. There is a process for offer submission with respect to proper procedure and documentation. Licensees know the process. Private individuals do not. The asset managers will not consider this option as improper procedure and documentation are just a time consumption that is not entertained.
I am privy to auctions in Las Vegas. I find that a buyer is better poised to purchase the REO or TRADITIONAL SALE at the comfort and pace of the buyer.
Auction–-Buyer to inspect HOA docs and complete inspections prior to the auction. Therefore buyer is poised to pay monies and may not even win the bid! REO and TRADITIONAL SALE on the MLS–Buyer to inspect HOA docs and complete inspections after accepted offer.Auction–-Buyer to pay 5% of sales price above winning bid. (Service charge for advertising and running the event)
REO and TRADITIONAL SALE on the MLS–Buyer will be able to purchase a property from MLS just as competitively as the Auction.
More on Auction There are:
Premiums–Usually 5% of the Bid Price padded to make the Sales Price.
Reserve bids-The minimum amount that the bank has pre-established to sell property for.
Absolute bids– Las Vegas auction does not have absolute bids whereas the property will go highest bidder. Therefore if the bid does not make the Reserve, the property does not get sold.
Shills-Hired by the Auctioneer at the auctions whom will compete with buyers to encourage higher bidding.
Everything is an auction so to speak. A buyer has a choice to bid on properties on the MLS in the comfort of the buyer’s pace and in the buyer’s arena vs. a buyer to bid on properties at the Auctioneers’ hyped up pace and arena.
If you need professional assistance to purchase your next home in Las Vegas, I will be happy to help you. I can successfully help you get you your home within your budget.
Julia St. Marie, ABR, RRG, RSPS, Certified REO Specialist