Shadow Inventory Lists: Worth It?

[Paul B.]

Just curious if anyone's found it worthwhile to receive these "shadow inventory lists" of REO.

While I suppose any advance notice pre-MLS is helpful, isn't the listing agent duty-bound to seek out the highest price, and isn't the buyer likely to wait until the property has hit MLS and been marketed before considering (let alone accepting) any offers?

I appreciate your feedback.

[Will Barnard]

There is no such thing as a "shadow inventory list" but there is such a thing as a list of properties that a particular broker has coming down the pipeline. These are usually REO properties that are still occupied by the previous homeowners, or just vacant and in the process of the clean-out, market analysis, and BPO.

These are the property lists you want to get your hands on so you can evaluate the exit price, the rehab expense and thus, your max offer price. If the BPO is going to be submitted at or below your number, you then know you have a deal you will be wanting to offer on. If you have formed a relationship with this broker, he/she will tell you the info and then if the BPO price is approved by the bank, your offer is submitted first (and pushed) so long as it is at the ask price and all- cash.