Top 10 things to know with REO offers

[Matt DuSold]

I would like to know is what are the most important things when making an REO offer?

Just to throw it out there. The REO that actually has me interested is one that has been on the market for a long while. It is for sure a junker and I am expecting a big rehab but I have the numbers worked out and know my max offer.

I am going to offer cash for the house and I have enough cash for the rehab as well so that isn't really a worry.

What I am worried about is that, like I said, its a junker. Its been
on the market a while and I am worried maybe something serious is wrong with the house like an addition that isn't in code/permitted or something along those lines. I did notice the air conditioning vents were all covered up as well so maybe this is a problem I'm not too sure. Would it still be smart to just offer cash with no contingencies for a lowest of the low? I know if
I can get it at the price I want that I can take care of worst case
scenarios with the cost of rehab to still turn a worthwhile profit.

So I guess all in all, is cash and no contingencies worth it to the
point even if you could have extra repair costs and serious issues to take care of? It appears as if other offers have fallen through with the listing history which I'm worried about something major turning up. The good news is that there aren't any water stains in the ceiling or walls, so I'm not sure what scared the others off, other than a complete gutting/updating of the entire house. Perhaps the cat urin smell... :)

This is why I am curious to the most important things to know about making a successful REO offer as I want to obtain this house for roughly half or less of the latest price change by the bank.

Any thoughts are greatly appreciated...

[Brooks Conkle]

You said a few key things.
1) Pet Stains -- I know you were joking, but these scare people away and are an easy fix. Great for you!
2) Been on the market a while --- again, great for you.

I know, you may be scared about something that you're not seeing. And to be honest, whatever you think your costs will be, add 10-15%. Why do I say this? Because I seem to go over this amount even when I think I had covered everything. So I just make it standard :)

In my opinion, if you don't think you have competition on the house, ask for an inspection period! We only do cash 'as is' if it's a hot deal that came on the market that same day that we're trying to snag.

Hope some of this feedback helps. Best of luck!