Is Buying a Bank Owned Property Right for You?
Buying a bank owned property (REO) in The Woodlands/Montgomery County is an opportunity to buy real estate at a discounted price. However, REO’s are not for everyone, especially if you are looking for a turnkey property with little or no rehabbing. Most REO’s need rehabbing, and some need major repairs. If you do find the right Woodlands/Montgomery County REO property, then there are a few things that you should be aware of before you purchase: Real estate the woodlands tx
· REO’s are sold in an “as is” condition. Banks generally will not do any repairs to the homes. In addition, banks are not required to provide buyers with a statutory disclosure statement.
· Banks are usually very slow in getting back to buyer’s offers. Expect at least a week or longer before you get a response. This delay could cause you to lose an opportunity to purchase another bank owned property or short sale. So you need to be patient.
· Verify if there are any other offers on the bank owned property you are interested in. Your Realtor can find out this information for you. It is common to find multiple offers on bank owned houses. Multiple offers drive the purchase price up because buyers are competing for the same property.
· You must submit a pre-qualified letter from your lender stating that you are qualified to purchase the house. If you are paying cash, then be prepared to show proof of funds.
· Cash offers have a stronger chance of being accepted than offers with financing contingencies, especially if there are multiple offers.
· Keep in mind if you ask for any seller concessions such as closing costs you may lose your REO to another bidder if there are multiple offers. Banks will counter out the concessions or they won’t respond to your offer at all. Most banks expect the buyer to pay the customary closing costs.http://www.utahburden.com
· Always negotiate a physical inspection contingency and a loan contingency if you need to obtain financing in your contract.
· Be prepared to deliver an earnest money deposit. The amount varies. Many banks require payment in the form of a cashier’s check to be deposited with the escrow holder upon acceptance of the offer.
· You have the right to inspect the property and cancel the contract should the inspection reveal that the property needs major repairs or is not in a physical condition that is acceptable to you.
· You are entitled to receive title insurance insuring that the property has clear title and is free of any encumbrances.
· Bank owned homes are usually not very well maintained and sometimes have been stripped of everything including counter tops, appliances, toilets, cupboards, etc. by angry former owners who lost their homes. Some bank owned homes are major fixers. While others may only need new paint and carpet.
· Since bank owned houses are vacant, banks like to close quickly- usually between 30-45 days. Be sure to have your financing available if you are obtaining a loan.
Many first time home buyers and investors are choosing to buy bank foreclosures because the prices are affordable and typically below market. When the real estate market bounces back, you will already have built in equity in your property. You will need to factor in any rehab costs so make sure that your budget allows for this.
It is critical to work with a buyer’s agent who specializes in the purchase and sale of REO and foreclosure properties in The Woodlands or surrounding Spring and Magnolia areas to help guide you through REO home buying process.
Check my website http://www.theWoodlandsForeclosures.
Grab crucial suggestions about vacation home – this is your personal tips store.
No related posts.
{ 0 comments… add one now }
You must log in to post a comment.