Making offers to Listing Agents-What's the Process

[Jarcelyn Dorsey]

Ok I'm done trying to work with agents!!!!!!!!!!!!!!!!!!!!!!!!!! So I would like to start making offers on mainly REO's by going through the listing agent.

I looked at Stephs' article about finding the contact name and number of the listing agent of the property.

But what's the process????? What questions will they ask?? How would I sign the paper work once it is accepted?? How soon should I follow up?

Jarci

[J Scott]

If you've never purchased a property before, I HIGHLY recommend starting by having your own buyer's agent, and not going directly through the listing agent.

Here are some reasons for this:

1. The listing agent won't represent you (most likely) and if you don't understand the process, you will likely get taken advantage of until you do.

2. REO listing agents are generally overworked and not very patient with people who don't understand the process. If you submit an offer that isn't properly prepared (or missing pieces), you may never hear anything back and have no idea if it was submitted or not.

3. More and more REO listing agents are going to online submission forms, and these forms often require you to be an agent to submit your offer.

4. Many REO listing agents are too busy to show you their properties. Especially the good properties where there will be many other interested parties. If they have the choice between sitting at their desk accepting turn-key offers from a buyer's agent and having to go to a house and show a new investor -- who may or may not be serious -- a property, they will choose to just take the turn-key offers.

5. There are now several REO listing agents in my area that don't answer the phone. If you don't know them personally, it's nearly impossible to get them on the phone. As such, if you don't have access to the MLS, you will have no way to know what forms they require for their offer (many require modified versions of the standard state contract).

All that said, if you really want to try to go it alone, here's what I would recommend:

- Call the number for the brokerage and ask to speak with the agent who has the property, or ask the person who answers the phone who has the property;

- When you get the agent, ask what forms they require to submit an REO offer and where you can get them. Most likely it's the state contract (perhaps modified) and they can either send you a blank version or can point you to a version on their website;

- Fill out the form CORRECTLY. Again, they likely won't have patience for someone representing themselves who doesn't know the process;

- Include a scanned copy of an earnest money check and either proof of funds or a pre-qualification letter (if you're getting financing);

- Either fax or email the completed offer to the agent (depending on their preference);

- Wait to hear something back.

- If the offer is countered or there are multiple offers, the agent will email or call you. They may have more forms for you to fill out if the property has gone to "highest and best." They may ask for more documentation, etc.

- If the offer is accepted, the agent will send you an addendum to sign, and will ask you to send a certified or cashier's check to the closing attorney or to them to open escrow.

- After that, you'll want to give the closing attorney the information for your lender and vice-versa. They will coordinate, and you'll probably get some questions here and there. Ultimately, you'll get a closing date, and you'll need to wire funds or bring a cashier's check to the closing.