Maximizing The Benefits Of Reo Properties For Sale
Most real estate market observers will say that buying REO properties for sale is the best type of foreclosure deal for buyers
. There is a lot of truth in this claim since buyers will be dealing directly with the bank or the lender and most of them are willing to negotiate for a reasonable price.
Getting the Better End of the Price Negotiation
When negotiating for the property price with a bank, the buyer should have already inspected the house with the help of a professional home inspector. Although the bank will never pay for the repairs, a buyer could still lower the price of the property if he could cite the repairs still needed to make the place habitable and can present near-accurate figures of the amount that will be required to complete these repairs.
The best chance for a buyer to get a really cheap price is if he makes an offer on REO properties for sale that have been in the market for quite some time. The longer it takes the bank to sell off a real estate property, the more eager they are to unload it. Buyers should always research details about the property such as the length of time it has been on the market, why it was foreclosed and how much the bank spent to get the property.
Dealing with Competition
If there are others making offers on the REO homes, those that have good credit standings will have a better chance. A buyer who has a pre-approved loan will also have an edge. However, there are banks who will offer a financing deal to the buyers of their properties.
Buyers should consult a real estate agent to find out whether the loan program being offered by the seller is better than other options. In most cases, seller banks are more willing to sell the property to the buyer who will also accept their financing package.
REO properties for sale can be as low as 50% of their true market value. Buyers should remember that banks are usually eager to unload these properties and clear their inventories so buyers can always make an offer that is at least 20 or 30 percent lower than the bank's asking price.