I will close a REO next Monday.It took me FOUR months to get it done. Here is what I learned:
1. Using the list agent give you strong competitive advantages. My case, the agent get paid around 4.5% total, he told me that if there is a buyer agent, the buyer agent will get 3% and he will be 1.5% given the work since May 2010 to evict the tenants, clean, maintain with own money and waiting for uncertain reimbursement. Give list agent the chance to work for you. The house is owned by the bank and most the time is manged by a third party company. Everyone care a deal go through to collect commision rather than how much the proceedings.
2. Do not afraid to negotiate the price. It is not easy to buy REO, just do it when it is a really good deal. A lot of opportunity there. This one passed, next one is waiting.
3. I agree do not use agents from our own (***). I used one for a short sale. it failed, she only care the deal go through and collect commision and LIE. I lost around 5K there. I am sure there must be good agents out here, but I won't.
