I called the real estate agent and she told me that it is a REO property and it won’t be on the MLS for another month. I would like to make an offer, should I make an offer now?

Question: There is a home in my Overland Park neighborhood that I have been keeping an eye on. I found out from the neighbors that it is a foreclosure. Yesterday, I noticed a piece of paper taped to the front window with a real estate agents name on it. I called the real estate agent and she told me that it is a REO property and it won’t be on the MLS for another month. I would like to make an offer, should I make an offer now? Would the listing agent show that offer to the bank? Or does the listing agent hold the offer until the property is listed? Is there any advantage/disadvantage to making an early offer?
Ken M. from Overland Park, Kansas

Answer: The bank would likely not do an off-market deal. If the home is a REO property, it has been through the court house auction process and now it is being prepared for the open market. The bank would rather have a home listed on the open market where they can obtain the highest and best offer. You may submit but chances are the listing agent will not accept it. If your offer is a low-ball offer, you can forget about there being an advantage to placing an early offer. The bank has done their research and are well aware of the repairs needed. If you are making an all-cash offer at a reasonable price, then there may be an advantage to making an offer first.

Homes in Kansas may sit a year plus before they hit the open real estate market. It takes time for the bank to prepare the home for the real estate market. I would contact a buyer's agent who understands REO properties and have them contact the listing agent. The buyer's agent will be able to get additional listing information when available. In addition, the buyer's agent will be able to guide you on when the best time to make an offer.

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