There are some desperate sellers out there, but perhaps none so desperate as banks. That’s right – banks that own foreclosed properties are anxious to get them off their hands. After all, their business is lending, not property management.
If you are pondering the purchase of such an “REO,” or Real Estate Owned property, how do you find one, and then determine if it’s the right buy for you? Banks work almost exclusively with real estate professionals, so your best bet is to begin your search at your trusted local agent’s office.
Chances are the broker will have a list of REOs to suit your needs and budget. While banks don’t usually price these properties much above that they’re willing to finally accept, lower offers on these listings stand a chance for at least consideration.
Look for houses that have been listed for more than 90 days, and then consider offering a bit under the asking price. However, do be aware of potential hidden costs associated with foreclosed properties.
Owners who vacate foreclosed homes may leave plenty of problems for the next owner. Broken pipes, damaged flooring and walls are just a few of the items that may need repaired. When the owner faces foreclosure, they sometimes take their anger at the bank out on the home. They eventually abandon the home, usually without notifying the bank that is foreclosing. If they abandon the property during the winter without notifying the bank, the property will probably have broken pipes.
Keep in mind that when you purchase a foreclosed home, you are buying it “as is.” The problems that you find will be yours to fix. Only consider purchasing a foreclosed home if you are very handy — or have handy people in your family and friends – and a reserve of money to cover the costs. There are a lot of properties out there for your consideration. Get your pre-approval letter from your lender and call your trusted local real estate agent and get started today!
Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.