Bank Owned Homes
Bank owned homes and foreclosures are at record levels in our local real estate market. REO (Real Estate Owned) properties can present great opportunities to purchase a home below market prices. Buyers interested in purchasing a foreclosed home will need to be prepared for the realities of the bank owned market. Normal real estate practices don't always apply when dealing with lienholders unloading distressed properties. Most often banks will expect the buyer to conform to their way of handling transactions and expect the buyer to complete the banks own addendum.
Bank owned buyer tips
1. Come prepared with financing or proof of funds in place- Bank owned homes are often listed far below market price. As a result, you won't have time to try and get your financing in order after you've found that hot deal.
2. Hire a buyer's agent- A good buyer's agent can give you valuable advice on how to structure your offer in the most attractive way. They'll often know about hot bank owned deals before the general public. The best deals have multiple offers on the first day. If you are relying on consumer facing websites, foreclosure lists or driving neighborhoods, you'll most often be too late. Buyer's agents are most often completely free to the buyer in Washington.
3. Insist on a home inspection. Don't get caught up in the competition and waive your inspection. Banks understand buyer's need an opportunity to inspect their investment. The bank may not fix all the issues that your inspector finds, but you want to know your getting a sound house along with a low price.
4. Be realistic on the price- The discount is often (but not always) built into the price on reo properties. Banks list homes to sell, not to sit on the market for months. Your buyer's agent will evaluate the deal for you and give you guidance on your offer.
5. Condition-Most bank owned homes will need some work. This can range from a good cleaning, to extensive structural work. Most will need new carpeting and paint at the minimum, but we do find foreclosed homes in perfect condition at times.
Interested in purchasing a bank owned home below market price? Contact us @ 253-820-2745 for honest advice.