Tips for Buying Foreclosure / REO Properties
BE INFORMED!!! BE PREPARED!!! BE READY!!!
Being informed about the process. Finding a REALTOR with experience in working with buyers on these type of properties can provide a wealth of information. Many REO properties will bring multiple offers in a short period of time. The benefit of a quick market analysis and consultation during negotiations can make all of the difference in a successful transaction.
Being prepared is probably the simplest. If you are paying cash you will need a recent letter form your bank stating “proof of funds” and if you are financing the property you will need a pre-qualification letter. The bank/ asset manager will not accept an offer without one of these items. Be ready to look frequently at great priced/location properties. Maybe reading contract and necessary paperwork prior to signing.
Be ready to act when the time comes. Inexpensive Foreclosure/REO properties have created a huge demand with first time home buyers and investors driving the market. Most desirable properties are only on the market a few days and receive multiple offers during that period. A buyer can expect to pay more than the current list price in many foreclosure and REO sales.
Remember with Foreclosure / REO properties finding the right property is only maybe 25% of the battle. The other 75% is Offer, Negotiating, Final Signatures, Loan Approval, Inspections, Surveys, Title work and several other task to make it work. HAPPY HOUSE HUNTING!