Buying R.E.O.'s   Each bank/lender works a little differently, but they all have similar goals. They want to liquidate their non-performing assets while getting the best price possible yet, they price these homes very aggressively. Again, their goal is to get them sold.   Generally, banks have an entire department set up to manage their REO inventory.  In today's complicated & overflowing REO market most banks are not able to hire enough help fast enough to handle the work load they are receiving. This has caused an REO market in which delays are the norm.   Once you make an offer to purchase, banks generally present a "counter offer" or ask for a "best and final" offer. Be prepared, it may be a higher price than you expect but, remember that these are financial institutions and they have to demonstrate to investors, shareholders, and auditors that they attempted to get the best price possible. You should plan to counter the counter offer, negotiate!   Your offer and subsequent counter offers will need to be reviewed by several individuals and companies. Even once accepted, the bank may inset wording like "...subject to corporate approval within 5 days."   Property Condition   Banks always want to sell a property "as-is" condition. They typically present the buyer with special as-is forms to sign. Most will provide a Section 1 pest certificate, but not unless you include it in your offer and negotiate the point.    They will allow you to get all the inspections you want (at your expense) but, they likely will not agree to do any repairs. Your offer typically includes an inspection contingency period that allows you to terminate the sale if inspections reveal unanticipated damages that the bank will not correct.   Even though you agree to as-is, always give the bank another opportunity to make repairs or give you a credit after your inspections. Sometimes they will negotiate to save the transaction rather than putting it back on the market, but don't take it for granted.   Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Sellers Transfer Disclosure Statement. We as agents are required to provide you our disclosure statements.   Making an Offer Before we make an offer, we will determine if there are any competing offers, previous offers or escrows. Most REO's generate multiple offers while many sit overpriced waiting for asset managers to catch up to their files.   Offers are FAXED to the bank. The listing agent needs the originals or wet signatures. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed).   Since there is no face to face presentation to the bank, we will need to present your offer with your profile, a pre-approval letter from your lender and sometimes a lender of the banks choice, proof of funds to close, a copy of the initial deposit check or good faith monies, and justification for offers below the listing price.   We need to make your offer targeted to a financial institution and easy to accept.