I've been showing Roger homes for two weeks. He and his wife, Lisa, need to buy quickly; or so he told me three weeks ago when he first called me. Roger came to me through his employers, who had used my services to buy five homes in the fall. I was highly recommended, and Roger had just gotten out of a nightmare transaction with an inexperienced agent. We both agreed he needed the help of an experienced Realtor to find a home given his tight deadline.

On the first day of Weekend 1, we viewed five REO homes, all priced well because those are the only homes I show my clients. Roger didn't find anything he liked. On Day 2 of that weekend, Roger viewed four more REOs...still nothing. It's not that I wasn't showing the right homes; sometimes buyers think they want a certain type of home, but once they start looking they discover what they really want. I'm quite accustomed to this education process. While many investors will buy the first time they view homes, many first-time homebuyers and buyers of retirement or vacation homes really aren't sure what they want until they've looked a bit.

On Day 1 of the second weekend, we viewed seven homes and found three that Roger wanted to make an offer on, knowing he would be happy with any of the three. I quickly wrote up the offers, and then waited. And waited. And waited. Waited for Roger to sign everything and get it back to me. Waited for Roger to get his revised prequal letter from the bank's preferred agent. Waited for Lisa to find the time to come by my office to sign. Waited for the grass to grow.

By the time I was able to fax the offers to the bank's agents nearly 36 hours after viewing, other offers had been accepted on two of the homes, including one that Roger probably would have gotten with his $11,000-over-list price offer. His last remaining offer is about $26,000 short, and it will not be accepted. Some times clients prefer not to take my advice; almost without exception, their offers don't get accepted.

On Day 1 of Weekend 2, Roger selected six of the listings I'd sent him to view. When we met, he'd come up with another three listings that didn't meet his parameters. Now I've realized he's all over the board, and I feel like we're taking one step forward and two steps back every time we meet. But at least I've been able to impress on Roger and Lisa the need for speed. Three offers written, signed, and faxed back to me within an hour of looking at the last home. In that regard, we're making some progress.

Of the three offers we wrote last night, only one has a chance of being accepted. Two offers are for $10,000-under-list price, and in addition to that Roger is asking for 3% for closing costs. He really doesn't seem to want a home as quickly as he professes to need one. One offer is $1500 above list, but with 3% for closing costs it is about $3000 under what the bank is looking for.

I am ALL about finding the best deal for my clients. But once again, I must remind Roger - these homes are already priced well below their true value; you can't build these homes for the list price! Mortage rates remain historically low. This year, first-time homebuyers who qualify will get a tax credit of up to $8,000. This convergence of positive factors is not going to last much longer. So I'm trying hard to help him take advantage of these factors before the opportunity is gone. Roger, that.

A quick glance at the statistics shows that approximately one-third of recent sales were sold for more than 101% of list price. Another one-third were sold for 96% to 101% of list price. Only one-third were sold for less than 96% of asking price. So if you really want a bank-owned home, be prepared to pay right around asking price if you want a 50/50 chance of getting your offer accepted. Banks like cash or big down payments; if you are putting only 3.5% down and want help with closing costs, you will have a much stronger offer if you are over list price. If you are paying cash, you may be able to offer a bit under list price. If you find a clean REO in good condition in a good location, you are probably not the only one who has good taste...there will be other offers on the same home.

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