It is important when making an offer that the buyer realizes that an REO property is owned by a corporation and replies to that offer may take anywhere from 2-5 business days. Many times the offer process has to go through different levels of management for a counter proposal or acceptance and the buyer must be patient for the corporation process. In many cases, REO properties will receive several offers on a property, and the seller will instruct the listing agent to inform all potential buyers that there is a multiple offer situation, and will request that all buyers present their final and best offers within 24 hours and will then decide on which offer they will work with. The seller is NOT obligated to accept any of the offers if none meet their requirements for the property and may counter offer the offer they feel has the most merit. Usually, the seller will require the listing agent to keep the property on the market for acceptable back-up offers if there are any problems encountered with the first position contract, so they don't lose marketing time.

Before making your offer, DO YOUR DUE DILIGENCE and get the information you need to properly quantify your considered purchase. As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender and/or Verification Of Funds (VOF). After you’ve made your offer, you can usually expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you’ll be dealing with a process that probably involves multiple people at the bank, as well as, the people at the Listing Agency, and the banks don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks.