In todays real estate market REO (Bank Owned), Foreclosure Properties and Short Sales make up a lot of the inventory in our area. Many of our lives have been touched by the economy and we have possibly been put into a position where short sale or foreclosure are viable options.
Here's a short little description of each type of Distressed Property-
REO- this is a Bank Owned Property- they are normally listed by a select few Realtors in our area, but you can use your own Realtor to purchase anything listed in the Multiple Listing Service.
Foreclosure Properties- these are just like the name states: Foreclosure Properties, this type of property can be bank owned or foreclosed by a trustee or an owner carrying a contract- due to the complexity involved it's always good to be represented by a Realtor.
Short Sale- This means that the owner has hired a Realtor to assist them in negotiating with the bank to take less than what is owed to pay off their home loan, or loans.
I have taken the time to become educated on theese processes, and am successfully navigating my way through these transactions daily. If you would like to see if a if selling your home on Short Sale is an option, let's talk. If you're considering buying a distressed property, I hope this info. helps you decide what's right for you.
There are many things to consider when selling or purchasing these properties, you need the help of a qualified professional. I am SFR certified, this designation is the only short sale and foreclosure certification recognized by the National Association of Realtors. I am constantly educating myself on the latest procedures and policies the banks are using so that when we get your new home in escrow, it will run smoothly- see below for a list of my suggestions to help you secure the best deal out there!
7 Tips on "how to" Grab one of those Killer Deals on the market now!
With the number of bank-owned REO properties expected to rise significantly in the coming months, here are the 7 Tips that can help you more easily and more quickly snag a bank-owned property.
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Hire an expert with experience buying bank-owned properties in your local market.
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Avoid lowball offers.Since most bank-owned properties are being sold at list price or above, a lowball offer will not work at current market conditions. Write an offer slightly above list price.
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Determine the value of the property. You make your money when you buy, not when you sell. Also have an inspector and contractor evaluate the property and itemize all the repairs that need to be made. Subtract the cost of these repairs from the estimated value.
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Submit a complete package.Each lender has certain guidelines for submitting offers. Send a proof of funds letter, a bank account balance statement and a pre-qualification letter from your lender if you are using conventional financing.
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Write multiple offers. Don’t expect your first REO offer to be accepted. Competition is fierce. Be prepared to write multiple offers on different properties before you land one.
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Prepare for counteroffers.Banks will often send you a counteroffer at a higher price. You may be willing to raise your price slightly with the first counteroffer, but if a second counteroffer comes in, respond with your “best and final” offer, reminding the selling agent that you are only buying one REO property.
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Be prepared to walk away.If the bank doesn’t accept your offer or you’re unwilling to raise the price during the counteroffer period, be prepared to walk away and find another deal.
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