It should be easy…or at least easier than this:
Real estate agents are struggling to maintain their sanity in today’s market. The increase in inventory has us running from listing to listing, previewing properties for buyers who want to find “good deals.” Many hours are spent making phone calls to listing agents or bank representatives in an attempt to see what the condition of the home is, and just how they acquired the homes in their inventory. There are more, and unfortunately will be more bank owned properties on the market until jobs re-emerge and unemployment rates lessen.
So what are you buying? These REO homes may need work. Are you prepared to do this yourself, or have the funds to hire it out? REO properties are typically “as-is” sales with no disclosures. Point here is you better have a qualified, certified, professional home inspector to check these properties. Some have been on the market a short time, others may have been vacant for years with no life, air, or electricity running through them! Unlike homes occupied or owned by humans who can provide you with details about the home and it’s condition, banks will not provide you with any history of the home, because they simply do not have this information. Who knows, part of the fun is uncovering things about your home yourself. you might just uncover a hidden treasure as well!
What’s the value of and REO property? Comparing these homes to other properties take professionals. What may have been a seemingly good deal last week, may not be next month or next year. Hire a REALTOR to compare this home to recent sales and inventory. Want to STEAL it? If it’s priced comparably, and it is what you are looking for, is it worth making a low offer that will bring every other sale down, making your investment even longer to appreciate? Your purchase will directly affect future sales and if the cycle continues, pretty soon, no one in your neighborhood has much to work with. What I tell my buyer is this, “If you love the home, if you can see yourself living here for 5 – 7 years, if the payment on this home is manageable and if the home if priced in line with others in the neighborhood, then buy it for that price. If you’re buying a home don’t obsess with “stealing” a home. Prices are lower than they have been in about 7 years, interest rates are low, now that is a “Deal.”
REO property sales generally close faster if a buyer uses the lender that holds the property as well. Look into this, ask how long they expect it to take to close, then ask you local lenders the same question.
Ok,.. still going back to 1998? (If you watched the video, you will get it..)