- 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
Replies (7)
- Andy Leung, "The Power to Move U!"
- Contributions:750
I think one of the big myths is that they can get a house in perfect condition for 25 to 50 cents on the dollar. Most are going to be scratch and dent type of situations. Also, they will be good buys but not steals.
- Alex Pachedzhiev, "saki681"
- Contributions:7
Thank you for the comment Andy! I somewhat agree with you especially for the discount on the dollar part. It is really a myth that in most cases a buyer will buy bank owned properties with such a big discount. Most banks price the property below market value and will negotiate in the range of 5-10% of this original asking price.
- Natasha Kennedy, "Natasha Kennedy"
- Contributions:487
Some of foreclosure properties are sold twice. Once through a short sale and the second time, maybe a week later, through a foreclosure. It happens sometimes because banks are overwhelmed with paperwork and a short sale department doesn't communicate well with a foreclosure department.
- Michelle Cote, "okwithcote"
- Contributions:128
I am a realtor and purchased a REO.
We got a great deal!!!
Then sunk a bunch of money into it - fixing those little things not so apparent.
If you love the neighborhood - and you are not afraid of a bit of elbow grease (by you or someone else). Then go for it!
In the end, it is no "deal" for the buyers. Unless you are a serious rehabber - or specifically want a neighorhood.
You may get a decent buy. But in this market - you can get that without digging so deep.
We got a great deal!!!
Then sunk a bunch of money into it - fixing those little things not so apparent.
If you love the neighborhood - and you are not afraid of a bit of elbow grease (by you or someone else). Then go for it!
In the end, it is no "deal" for the buyers. Unless you are a serious rehabber - or specifically want a neighorhood.
You may get a decent buy. But in this market - you can get that without digging so deep.
- Mike &Eve Alexander - Buyers Broker, "Orlando Buyer Broker"
- Contributions:173
1. You get a special warranty deed instead of a general warranty deed.
2. The HOA may not be paid off in full and the association can come after the new owner. Other debt may have been missed or paid off and not recorded.
Do not use the sellers title company...pay for your own and have your own attorney scrutinize the documents.
Eve in Orlando
2. The HOA may not be paid off in full and the association can come after the new owner. Other debt may have been missed or paid off and not recorded.
Do not use the sellers title company...pay for your own and have your own attorney scrutinize the documents.
Eve in Orlando
- Alex Pachedzhiev, "saki681"
- Contributions:7
It is strongly recommended to have your own settlement attorney to do a preliminary title search to make sure that all late fees, judgements or liens are paid off at closing.
- sunnyview
- Contributions:25139
I think that beyond the legal and title issues that people need to have a really good inspector if they are buying an REO. You basically buy them "as is" and so you need to do everything you can as a buyer to make sure that you know the house inside and out. That can be hard, but it can save you thousands down the line in unexpected repairs.
Most agents have a few good inspectors that they can refer and in some cases it is also worth getting a more specific inspection of the foundation, plumbing or electrical if there are any questions about the before you buy.
Most agents have a few good inspectors that they can refer and in some cases it is also worth getting a more specific inspection of the foundation, plumbing or electrical if there are any questions about the before you buy.
What to consider when buying bank owned properties
-
- 0.0/5.0
- (no reviews)
Contributions:7My name is Alex Pachedzhiev with Realty USA. I found to be very interesting for majority of home buyers to understand the purchasing process of bank owned homes, or also called REO(Real Estate Owned).
I welcome everyone to join me in this discussion what's really the most important things to consider when dealing with REO.
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.