My office just put this informational sheet out to all agents tonight .. but it's good info on bank-owned properties. Especially worth noting is the part that the most recent bank-owned homes selling for 96% of current list price. Enjoy!
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Everything you always wanted to know about buying Bank Owned Properties but were afraid to ask!
The following information is a direct result of two group discussions with REO (real-estate owned) agents that we held at the Market Center in the past few days. If you want to set yourself up for success when attempting to buy an REO-Foreclosed properties then pay close attention to these guidelines.
- Assume that there are ALWAYS OTHER OFFERS that you are competing against
- Make your FIRST offer a Highest and Best
- Be FULLY Pre-Approved with supporting documentation (desk top underwriting document, credit score, letter of approval)
- Submit a COMPLETE CONTRACT (see the MLS listing attachments)
- Include a COPY of the ESCROW CHECK
- Ask for a QUICK CLOSING date
- CASH offers get attention
- Limit the CONTINGENCIES
- Keep inspections to MAJOR SYSTEMS only (HVAC, Roof, WDO, etc)
- MOVE QUICKLY on ALL paperwork – return addendums timely and be aware that banks may accept other offers in the meantime
- REMOVE EMOTION from the equation.
- EDUCATE and CONTROL your buyers on the process
Based on the sales in MLS in the past 30 days (3/8 to 4/7), REO-Foreclosed properties…
· Sold for 96% of the Current List Price
· Sold on Average in 28 Days
· 51% Sold for Cash
· 25% with Conventional Financing
· 20% FHA
· 4% other terms