So you are ready to make an offer on a Bank Owned Property or REO Property and you are wondering what is soo different than making an offer for an REO or private seller?
There are many things to consider when buying or putting in an offer for a REO Property or Bank Owned Property.
Now while there is now way to explain all of the aspects of buying an reo or bank owned property I will attempt to explain a few of them to you.
Asking Price
Most buyers think that even in today’s market that the bank is always will to accept much less than asking price on a foreclosure. In some cases you might get lucky but offering much less is not something I would suggest to my buyers in my area. Most of the Bank Owned or REO Properties in my area in most cases go for Full Asking Price and over asking price due to the location of the property. The asking price is exactly what it is saying, just a asking price but this does not mean the bank is always willing to get low balled with multiple offers.
If you are thinking of buying or putting in an offer for a property ask your Real Estate Agent to see what has sold for similar properties like the one you are viewing.
Example, If the average sold price is 85K, and the bank is asking 82K there is a good chance the bank may just be trying to get over bidders in this situation rather than more low ball bidders. But if the average sold price is 82K and the bank is asking 85K then you have a chance of getting the property between $80-85K in this situation but not always a guarantee.
How The Banks Attempt To Sell Them
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in “dumping” real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a “counter-offer.” It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days.”
If you are ready to discuss your options with a local real estate professional you should give me a call today .
David J Rogers II
Broker/Owner
Rogers Realty Group LLC
2620 S University Dr. 308
Davie, FL 33328
Phone: 954.684.3664
My name is David Rogers, and I’m a licensed realtor who loves to provide high-level service. Please let me know how I can serve you!