Need advise regarding REO property

[mahanica]

I am a home buyer interested in purchasing an REO property as my primary residence. I currently am not working with an agent.
This past weekend, I located a REO home in a high end neighborhood with great schools. After doing a bit of research I found out that Deutsche bank purchased it at auction for $100. The loan amount in default was just under $820,000. It is currently on the mls for $650,000.

I spoke to the listing agent today who was excited that I did not have another agent representing me in this deal. The property description says "as-is". Here is where I need some advise -
1. Should I get an agent to represent my interest ??
2. Can an offer be made without an inpection or contingent to an inspection in an REO - as-is sale ?
3. What kind of an offer am I expect to put in ? Should I do best and last or a lower one inorder to start negotiations with the bank. Will the bank not consider me a serious buyer if I put in a low offer ?
4. Can I do a contingency offer ? (my home is currently on the market too.)

Thank you. Any guidance will be much appreciated.

[Mack Perry]

1. Yes
2. Yes
3. It typically takes them a while to respond no matter what kind of offer you submit. Be realistic and have #1 prepare a CMA for you.
4. Yes

[mahanica]

Thanks for the response. Can I go through a standard realtor or should I look for one with REO property qualification ? I live in NJ - any referrals ?

Just wondering if I can negotiate a better deal with the bank if I did not have an agent represent me...

[Mack Perry]

The property is currently listed therfore the bank has already agreed to pay a commission. Where do you live in New Jersey? I know several highly qualified agents who could help you depending on your location. Feel free to send me a PM and I will help you find your agent.

Does your listing agent also represent buyers? Let me know.

[mahanica]

Does your listing agent also represent buyers? Let me know.

It is my understanding that the listing agent is a "registered realtor" and is more than willing to represent me.
I have not toured the property yet and would like to do so after I have made a decision on the realtor situation.

[Ryan Taylor]

If you decision is to work with the sellers Realtor as your agent, stop right now! You due not want to be a customer of or be represented by list agent. You need a skilled agent in your corner. You will not be able to talk a better deal by not having an agent. All that happens is the asset management company and the listing agent both make more and you get squat, not even good representation. Just my thoughts....




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Sincerely,

Ryan Taylor
(757) 288-5566 Cell
(866) 864-4023 Fax
J.Wright and Associates
ryan@taylorealestate.com

[mahanica]

What if I came in with a really low offer ? Basically our budget would not allow us to even come close to their asking price. So, in that scenerio, would the bank come down in price inorder to get the double agent benefit of reduced commission?

[ericbadgley]

Hire an agent and he will answer all these questions and get you the best deal

[Ryan Taylor]

Sir you are putting the horse before the cart. What is the repaired market value of the home? How much(in dollars) work is needed to bring it up to it's best market value. What are you carrying cost? (How long will you hold the property and what are all the costs involved per month) Add in your profit margin, closing costs (buy and sell) commissions, etc. Subtract that number from a conservative probable sales price and the number you have left is your offer price. I don't care if you listen to any of what I just wrote... but hear this. Find an agent that can prove to you that they are familiar and comfortable working a Reo transaction. Impatient agents or buyers, need not apply.

[mahanica]

This is for a primary residence as opposed to investment. The house will approx be $1mil after repairs of about $150-200. Asking price is $650. My budget is $550.
The biggest problem is finding an REO agent. Where do you even look for one. The internet has been fruitless and I am still waiting for a gentleman who responded earlier in this forum to pm any reo contacts to me.