The Ten Commandments for Buying Bank Owned Properties
1. Be prepared to offer 10 PERCENT OVER THE ASKING PRICE. 2. Be available to look at properties at a moments notice. 3. Be ready to PULL THE TRIGGER! These houses sell FAST! 4. Bring your “see it finished” goggles with you. You must be able to envision the property as it can be, not just as it is now! 5. Have your loan approval (not a “pre-qual letter) on file in our office. 6. Have your proof of funds (bank statements showing where the down payment is coming from) on file in our office. 7. Be prepared for a short escrow. 8. Be prepared to pay for the termite and retrofit expenses on your own. 9. Be prepared to roll up your sleeves and do some work! Most of these properties need cleaning up even before the rehab begins. 10. GET EXCITED! This is a GREAT time to be a buyer! Despite what you may read in the papers or hear on the radio not every segment of the housing market is “dead”. One segment of the housing market that is very active is Bank Owned Foreclosed Properties or REO’s (Real Estate Owned). The reason for this is that the lenders have finally figured out that they own so many of these properties (and more are being foreclosed right now) that they better get them sold. They have started listing these properties BELOW market value and then they sit back and let the buyers bid them up to whatever the market will bear. Many of these properties represent great values but not all of them. If you want to be successful and get a great deal on a bank owned property you need to work with an agent (us) who is experienced in this market and who knows how the game is played. |