how to buy shadow inventory

NEW -> Contingent Buyer Assistance Program
A

autox_IHB

New member
Is there a way to buy REO homes that hasn't made it to MLS yet?



Foreclosure services such as foreclosureradar and realtytrac list homes REOs that I'm interested in, but are not on MLS. Do I call the bank and make an offer, go through a broker, or do I just have to wait until the bank decides to market it?



Thanks.
 
[quote author="autox" date=1247354772]Is there a way to buy REO homes that hasn't made it to MLS yet?



Foreclosure services such as foreclosureradar and realtytrac list homes REOs that I'm interested in, but are not on MLS. Do I call the bank and make an offer, go through a broker, or do I just have to wait until the bank decides to market it?



Thanks.</blockquote>


Why not try it? Banks are businesses and each is different. What does the bank want? Money? To make a loan? Find out. Ask the bank that owns the property you are interested in.
 
The follow up question is: how do I tour the inside of the property before making an offer? The outside may look like a normal well kept house, but the interior may be trashed.
 
Good luck, from everything I have seen and heard, it is virtually impossible to even talk to anyone who has any decision making power. If an agent hasn't been assigned and it's not listed yet, you really don't have a shot in hell at actually seeing the inside. Go ahead and try, you might be lucky, but don't count on it.
 
[quote author="tmare" date=1247358996]Good luck, from everything I have seen and heard, it is virtually impossible to even talk to anyone who has any decision making power. If an agent hasn't been assigned and it's not listed yet, you really don't have a shot in hell at actually seeing the inside. Go ahead and try, you might be lucky, but don't count on it.</blockquote>
Agreed, the biggest issue you'll encounter is finding the asset manager that is in charge of making the decision for that property. If you know someone that works at a bank then your chances would increase. Typically bulk buyers (investors) will have a better chance of picking up shadow inventory.
 
[quote author="autox" date=1247354772]Is there a way to buy REO homes that hasn't made it to MLS yet?



Foreclosure services such as foreclosureradar and realtytrac list homes REOs that I'm interested in, but are not on MLS. Do I call the bank and make an offer, go through a broker, or do I just have to wait until the bank decides to market it?



Thanks.</blockquote>


You are probably going to have to wait until it hits the MLS.



When an asset manager gets a case file, he has no idea what the property is worth. An asset manager will contract with people to secure the property, evict any holdover tenents, obtain and inspection and a broker's opinion of value. Then they will generally list the home for sale in the MLS with a real estate agent.



If you were to contact an asset manager and make an offer (good luck with that because they do not want to get your call), the asset manager would not follow through on it because he has no idea if your offer is a good one. You might be offering 1/2 of current market value for all he or she knows, and when they are trying to get rid of 1,000 other properties, your offer will not get much attention.
 
you should read JimtheRealtor's account of dealing with REOs and the asset managers (at bubleinfo.com)



from what he writes, I would guess that there is no way to access that inventory until it hits the MLS
 
[quote author="awgee" date=1247379231]Do not let any of these nattering nabobs of negativity stop you from trying.</blockquote>
If a person has the time and energy to do it, they should but they should temper their expectations so they don't set themselves up for disappointment. The effort may pay off.
 
[quote author="autox" date=1247358827]The follow up question is: how do I tour the inside of the property before making an offer? The outside may look like a normal well kept house, but the interior may be trashed.</blockquote>


Knock on the door and ask if you may see the inside of the home.

(and maybe bring a $20 gas card to offer as a show of gratitude.)

Remember that these occupants can get you front and center when the home does go on the market.

Ask specific questions and "stay in the question."



-IR2
 
You must log in or register to reply here.
Back
Top