With so many bank owned properties you would think it should be easy to snag one of these properties for yourself. The problem is that you are not the only one thinking that way. Here in Santa Clara County we experience about 40 REO properties a day. Most pertain to areas like Alum Rock, South San Jose, Gilroy and Morgan Hill. More often then you would think a few will sneak in from Santa Clara, Sunnyvale, and Cambpell. These are the rarer of the bunch and generally tougher to get.
Last week I put in 4 offers for clients who are attempting to buy an REO property in Santa Clara and in Alum Rock, San Jose. Three properties were very well priced and offered a good value, the other required so much repair that it was sitting on the market for some weeks.
The 3 well priced homes 3635 Machado AVe., in Santa Clara, 3226 San Juan Ave., in Santa Clara, and 3755 Mondigo in San Jose, were all multiple offer situations with ten plus offers. Machado countered everyone back highest and best while the others just took highest and best offers. The other 716 Kiely Blvd., has not yet responded.
When offering on REO properties, you certainly need to make sure your Realtor has produced a good file for you. This is going to be reviewed by the bank and not anyone that your Realtor can try to persuade. You should make sure you are fully pre-approved with the typical underwriter conditions, provide sources for down payments, and write a clean and aggressive offer.
On the plus side these homes are not selling for much higher than their offering price. Machado sold for $426,500 from $400,000, the others I have no confirmation on the sale price yet.