Purchasing a REO home?

**scbecker** · 08-03-2008, 11:03 AM

This past saturday we placed an offer on a REO home for full listing price, 20% down, no contingencies, and a speedy closing. The home was listed on the MLS through a listing agent that friday friday.
We just so happen to know a neighbor who approached an agent that was showing the house the same day we submitted our offer (Saturday). After playing nosey neighbor, the agent told our friend that the house was just sold for almost 60k over its listing price. Is this possible, considering the house was listed on a that friday afternoon?

We too would also consider placing an offer above the listing price, but the 60K mentioned above was above current market value for that neighborhood.

Any insight on purchasing a REO would be greatly appreciated. Or did this one get yanked from underneath us?

Thanks,

**minnesota-mls** · 08-05-2008, 08:21 AM

Thanks so much for your post. Unfortunately, what you are describing is much more common than a person would think (at least here in Minnesota.) We are finding many of these banks really pricing these MLS listings to move. As a result, multiple offers by multiple buyers, and the home is getting sold for way over list price.

Obviously this is not happening for all REO properties. However, those that are aggressively priced certainly are moving quickly.

We tell our buyers, "Don't be discouraged." Just keep looking and move quickly if you do find something you like. And of course make sure you have a top real estate agent on your side to help you with the process.

I hope this helps!

**markbrian** · 08-06-2008, 10:27 AM

If you submitted an offer, your agent should be able to tell if your offer was declined. What should happen is the listing agent calls all other agents that have submitted an offer and tell them there are multiple offers, in other words, submit your highest and best. But if the listing agent is trying to get both ends of the commission or keep the sale within their company, that may not happen. May not be fair,ethical or in their clients best interests, but it could happen.