What to Do When You Want to Get Amazing REO deals
Foreclosures are for the most part a sad affair. By the end of quarter 1 of 2017,5.5 homes were reported to be underwater,meaning the outstanding mortgages balances were more than the value of those homes. At times,lenders may not find ready buyers of foreclosed properties at auctions and may therefore engage REO specialists who usually work together with the local real estate agents to sell those homes. When you buy a REO property,you are in actual fact helping not only the bank but also the person or the family that sadly couldn’t continue making those payments. These homes are typically sold at a discounted price. It is highly likely that you will make a gain if you buy such a property and sell it when the price goes up. If you read through the suggestions that follow,you will increase the chances of finding and securing some great REO deals that are out there.
Make sure you are dealing with the right realtor. If you don’t have your own trusted realtor,you can rely on good referrals in your social or professional networks or you may get a reliable one online on trustworthy websites.
Get factual information from your broker on the home. Note the mortgage balance and the price the bank is asking for and ensure to pay a value somewhere between the listed price and the mortgage balance.
Getting Down To Basics with Options
Find out the estimated value of the home you want to buy. Your trusted realtor should be able to prepare reliable comparative market analysis for you at no cost. The report from your broker will greatly help you figure out if the current price for the home is a highly discounted one when compared to the average market prices for properties matching the one you want in size and location in the same area.
A Simple Plan: Properties
Get from your real estate agent to give you the number of bids tendered in for the property. Offer an offer lower than the list price if the realtor has received no offers so far. Make sure your offer is above the highest offer by a certain amount. If you are competing against investors with capacity to pay in cash while you need to be financed,consider offering a higher price than the highest offered.
Get 1 or 2 bank preapprovals for mortgage;preferably,one should be from the lender owning the property on sale. Offer to split escrow and transfer fees with the REO lender,offer to inspect the property in a very short time compared to what others are proposing and do not ask the bank to do repairs on the asset.
The property purchasing knowledge you possess now naturally makes you feel more confident to visit your realtor of choice to make an offer. Take time to find a great realtor either by referral or online searching and you will most likely have dependable information on worthwhile deals.