My New Blog

Are you looking for a bargain priced home and a fast answer from the seller?

I am not referring to a 'short sale' home, which is the term the real estate industry has adopted for a property that is no longer worth what the owner owes to the bank. If you have been looking for a home in the past year, you have probably heard the term 'short sale' mentioned by a real estate agent, or seen an article describing this in your local newspaper. 

Short sale properties consume a lot of time and energy from everyone, and have a good chance of being ultimately foreclosed by the bank before the loss mitigation or asset manager at the bank makes a decision on an offer presented by a bona-fide buyer.

Many real estate agents have expended a good amount of time on short sales that have not closed, so many of them have decided to no longer show or recommend a short sale property to a client. Also, many buyers who have been caught up in one of these failed transactions have sworn to not do this again.       

So... if you are a qualified buyer in the 2008 real estate market, what can you do to avoid wasting time and falling into the emotional trap of thinking you have found your new home, only to be awoken to the hard reality that it is not happening?

Consider a property that has already been foreclosed by the bank.  These properties run the scale from being in 'move in' condition, to some that need major repairs. Some have had the appliances removed, and some have been "trashed" by the former owner.

The important thing to understand is that in today's market, there are good properties in 'move in' condition available at prices substantially below their previously appraised values.

The process, that the bank subjects each REO (Real Estate Owned) property to, ensures that the price at which the home is being offered is less than the price of comparable owner occupied homes that are on the market.

Oftentimes the REO home is initially priced to attract a buyer within 30 days. In the current market, homes that fit this profile are going to "pending sale" status within 10 to 20 days.  

If the home does not attract an offer, the bank will gradually reduce the list price in small increments until a buyer steps up to make an offer for the home. 

There are several significant differences between buying a home from an owner occupant vs. from the bank.  Once your offer is accepted, you can expect to be presented with bank generated documents that you will be required to sign, before the bank signs any paperwork.  

These bank documents facilitate the transaction from the bank's point of view, as it will then have a standard contract for all REO properties, regardless of where the property is in the United States. The bank does not need to have an expert in each state, who is familiar with the wording of the state's 'boilerplate' realestate contract.

With respect to inspections of the property, you will generally have 5 days to complete them -from your receipt from the bank of the fully executed state contract with the signed bank documents. 

Depending upon the condition of the home, and which bank owns it, you may be required to turn the utilities (power, water, gas) on in your name in order for the home inspector to be able to complete an inspection. 

To learn more about this process or to find one of these homes, call a licensed real estate agent who is a member of the local Realtor Association. She or he will have access to the multiple listing service database, and will be able to provide you with a list of bank owned REO homes that are for sale in the community you want to live in.

When we list a bank REO home for sale, our company represents the bank, and we prefer to not also represent the buyer. If you are in need of a real estate agent who is experienced in representing buyers of foreclosed homes, send us an email with your contact information.  We will refer you to one of the professionals in your area, who we know will be capable of representing you as a buyer of an REO property.

http://www.azreo4u.com

info@AnthemRealty.biz