Are Multiple Offers Common with REOs?

To many looking to buy in this real estate atmosphere, a REO listing appears to attract many bidders.  This story is becoming quite popular with buyers as multiple offers are flooding REOs with the bank responding quickly with a “highest and best” offer request.

Although, watch out.  Not all the time are there multiple offers on a property and the agent may come back asking for the highest and best offer when there are no other offers on the table to get you to offer more.  However, there are banks that will not counter on short sales or REOs and you must think about making your highest and best up front.

Banks are really trying to get these homes off their books as the bank may have hundreds more to sell.  Before making a higher offer, ask your agent to pull the tax records to find out what the original mortgage amount was and check to see how much the lender paid for the property.  It will help you paint a bigger picture on what number the bank is looking at and how desperate they will want to get this property off the books.  Your best best, is to offer a comfortable amount (without lowballing) and move up the closing date or more earnest funds.  The bank wants a quick close, so this will help entice them to accept your offer.