The last few weeks a DG member and I have been working with a couple of different realtors. They know we're investors and we explained what types of properties we're looking for. They've shown us a few REO's that need minor to moderate rehabbing. We want to put in lower offers because of the work and they clam up. They keep saying "Well there are other offers that are higher that the bank hasnt got back to these other people on. Also the comps in the area are showing that houses are selling for around this price."
Ok that's all great in a perfect world. But why on earth would I buy a house that needed repairs at FMV price. That would mean I would have to re-sell the house HIGHER than FMV to recoup rehab costs and God forbid make a profit. These Realtors dont realize that and only think about the commission they can get now. They also dont realize that REO properties cant fetch FMV prices because quite frankly, they're still over priced in my area. And there are still some idiots who are over paying for properties and the Realtors would rather chase after those few that they can hit a home run with on the price.