If you are in the market to find and purchase a foreclosure property, also known as Real Estate Owned (REO) or Bank owned property, there are two main factors, which you would like to consider first. These are:
1. Negotiation on the purchased price – It’s very difficult to negotiate on foreclosed properties. The prices are set according to the fair market value for quick sell and require multiple levels of approval.
2. Condition of the property – Banks do not have first-hand knowledge of the foreclosed property prior to acquisition. Therefore, banks do not have any records of maintenance and repair work done on the property and do not fill the Seller’s disclosure form. As a result, you must include your repair cost, if any, when you are checking your affordability.
There are two ways to buy foreclosed properties –either through a real estate agent or through a public auction. Since buying a foreclosed home is slow and very complicated process involving various steps, it is highly recommended that you hire a real estate professional who has an extensive background in dealing with foreclosed homes. The experienced real estate agent can make your experience of buying foreclosed property as seamless as possible and also painless.
The other way to buy the foreclosed property is either through public foreclosure auction or public auction through an auction company. Buying the REO property through an auction is also very complex and highly competitive. It’s always desirable to purchase the property with the help of an experienced real estate agent.
For more information on buying the foreclosure properties, please contact me at OSMRealty at 512-466-8007, email firstname.lastname@example.org or visit OSMRealty.net.