Just because it’s REO that doesn’t make it a good deal!

When it comes to buying a REO (Bank Owned Property) experience has shown in most cases the asset manager has never seen the property and has very little information about the home. Usually the only information they have is from a Realtor’s BPO (Broker Price opinion) which includes some pictures and a vague condition report. Remember the asset manager is not in the business of helping people buy homes. They are in the business of liquidating inventory at the highest possible price. Some buyers have the perception that REO Properties are always a good deal. In some cases this is correct, but in others it has turned into a buyer’s nightmare.

Here are a few free tips for the REO Buyer

Work with an accredited buyer’s agent that has experience with Bank Repossessions. The Realtor you choose can determine the outcome of your purchase. The listing agent works for the seller and is under no obligation to represent you in this transaction. Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a Realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements. Be prepared to buy! Don’t submit an incomplete offer. Have all documentation needed to support your offer such as Lender Approval, Seller Disclosures, Legal description, and even a repair estimate if property has visible issues. REO Properties usually have one thing in common. Repairs are needed! It makes sense that people don’t spend money on a house that is close to foreclosure, but it’s also common for people in this market to have never considered the cost of maintaining a home from the beginning. Get an inspection from a licensed inspector that can also detect pest and termite infestation. Don’t expect a disclosure from the Seller regarding any defects especially since most banks only do patch work repairs in order to get the home sold.

What do you need and want in a home?

Sounds simple, yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small just because the price is right. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view. Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. If you have a systematic plan before you shop, you’ll be sure to avoid these costly errors when you purchase a REO.

Where do I Start?

If your looking to Buy or Sell Real Estate in Tacoma, Gig Harbor, Port Orchard or the surrounding area’s call me to get started. Jeff Clancy is a Washington State Licensed Realtor specializing in Residential, Waterfront, Land, and Manufactured Homes. I have been in the housing industry over 12 years and have worked with bank reposessions over 10 years. My experience is your advantage! http://JeffClancy.com

Jeff Clancy, 253-720-7588
Realtor, ASR, ABR, SRS, E-Pro
Keller Williams Realty
11515 Burnham DR NW #A
Gig Harbor, Wa 98332

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