- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (11)
- Laurel Jaques, "LAUREL JAQUES"
- Contributions:65
It wouldn't suggest planning to ask the seller to complete repairs or asking for a credit for repairs. The bank (seller) reviews the repair issues of the property prior to listing and are aware of obvious repair issues and have considered them in the list price. IF HOWEVER, you find something not visually evident in your home inspection, electrical, plumbing issues, then a credit or price reduction will be reviewed by the bank and possibly accepted. If there are significant repair issues on the property, you may want to consider renovation financing.
- Gary May, "RealtorTampaBay"
- Contributions:56
Lots of great advice previously mentioned!! If you're in the beginning stages of becoming a property investor...make sure you have your financial plan established, including home repair professionals and property management. It's a great time to be a buyer...Best wishes!!
- Matt Henderson, "MattHenderson"
- Contributions:3
A great question! As a home inspector myself, I can tell you that one of the most important details is to get a competent inspection done on the property. The (prior) homeowner is no longer involved, and so you have a seller (the bank) who doesnt know what is going on with the property usually. The other responses on this list are goving you a bunch of great suggestions as well. best wishes, Matt
- Eric Nicks, "Eric Nicks"
- Contributions:8
Definitely work with an experienced buyer's agent that has closed several REO's. Also know that, even though you are buying the home "As-Is", you can ask the seller to fix the repair items, or credit in lieu of repairs, for repair items that come up on your inspection report. Further, if you're an investor, be sure to inquire about any deed restrictions on an investor purchase. Fannie Mae has a 90 day deed restriction on their REO's.
Good Luck!
Good Luck!
- Laurel Jaques, "LAUREL JAQUES"
- Contributions:65
Also important to know that if you find a bank owned home to make an offer on, most sellers (the bank) will require a pre-approval letter from a MAJOR lending institution (not a mortgage broker). Often this pre-approval letter must be submitted with the offer, or the seller will not review the offer. Since many bank owned homes enter into contract quickly, it is a good idea to get your pre-approval letter in advance of writing offers, then you will be ready to go.
- Dave Sutton, "Dave Sutton"
- Contributions:45
Here's an unusual one that can trip up FHA buyers (of REOs or others). If an FHA appraisal has been completed in the previous six months, FHA requires that it be used for subsequent purchase.
Why do you care? Because, to create an example, if in the six months before your offer, an escrow was opened ith an FHA buyer, an appraisal was completed and then the sale failed for some reason, you are stuck with the previous appraisal.
Of course if that appraisal is higher than your offer, it's not a problem. BUT if it's LESS than your offer, you will have to raise your offer or wait out the six months.
The listing agent should know the details.
Why do you care? Because, to create an example, if in the six months before your offer, an escrow was opened ith an FHA buyer, an appraisal was completed and then the sale failed for some reason, you are stuck with the previous appraisal.
Of course if that appraisal is higher than your offer, it's not a problem. BUT if it's LESS than your offer, you will have to raise your offer or wait out the six months.
The listing agent should know the details.
- Dan, "the_country_hick"
- Contributions:4699
Be absolutely sure you get title insurance. Some of these properties may come back with a bad title because of certain practices engaged in by the banking system. This is not even close to optional.
- Tug of War
- Contributions:1969
I would recommend reading the Information provided by the Banks and the Fed Gov. about the Properties they have for Sale ...
REO-Bank Owned Properties
Banks have created Sites for the Public to use (For Free) to view and find Information about the Properties they have Listed for Sale
Sites Like..Bank of America...Wells Fargo...Chase
You can find links to Bank sites here...Link and/or Link
The Fed Gov has Sites for its Properties for sale
HUD Homes...Fannie Mae...USDA..FDIC
You can find the links to the Gov sites here...Link
First Time Home Buyer Info about the Process & Excellent Info/Resources for any Buyer..Buying a Home
Everyone should read the Information on the Department Of Justice
Anti-Trust Division Web Site about all the options Consumers actually have
New business models are emerging that allow consumers to save thousands of dollars when they buy or sell a home
Good Luck
REO-Bank Owned Properties
Banks have created Sites for the Public to use (For Free) to view and find Information about the Properties they have Listed for Sale
Sites Like..Bank of America...Wells Fargo...Chase
You can find links to Bank sites here...Link and/or Link
The Fed Gov has Sites for its Properties for sale
HUD Homes...Fannie Mae...USDA..FDIC
You can find the links to the Gov sites here...Link
First Time Home Buyer Info about the Process & Excellent Info/Resources for any Buyer..Buying a Home
Everyone should read the Information on the Department Of Justice
Anti-Trust Division Web Site about all the options Consumers actually have
New business models are emerging that allow consumers to save thousands of dollars when they buy or sell a home
Good Luck
- Sue Tristan, "Sue Tristan Realtor"
- Contributions:10
Definately want to work with a realtor knowlegable in that area. you also want to complete all inspections and make sure to have some "cushion" for any suprises.
Good Luck!
Good Luck!
- Sandy Weed, Jr, "Sandy Weed Jr"
- Contributions:10
Be prepared for many hidden defects and/or deferred maintenance. As a beginner, make sure you have inspections done by a qualified person - try and get a rehab loan from FHA if you are going to live there; otherwise budget your rehab with an extra 25% for contingencies
- Laurel Jaques, "LAUREL JAQUES"
- Contributions:65
Best advice I can give you is to find a Realtor who sells foreclosures in your area. They will answer your questions about what to expect to find as a foreclosed property and how to negotiate with a bank. As a seller of many bank owned properties, I can tell you that it is a lot different from a regular sale!
What do I need to know about buying bank owned properties?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.