How to Buy Bank-owned Homes


by Robert - Date: 2008-10-17 - Word Count: 482 Share This!

When it comes to buying foreclosed properties, there are a few things you should know. Since buying savings bank owned Condos isn't exactly the same as purchasing a new Condo through a realtor, you are doing yourself a favor to become informed about the proper process for buying foreclosed real estate. In this article, we want to give you a short "how-to" guide on buying savings bank owned condo, as there are a few things you need to know in order to make the process as simple as possible.

What Is savings bank Owned condo?

First and foremost, you need to understand that buying savings bank owned real estate, or REO as it is more commonly related to (Real Estate Owned), is unlike any other Condo buying knowledge. For starters, you don't have any of the guarantees with REO that you would when purchasing a new Condo through a realtor - mainly because these Condos are those which have failed to sell in a foreclose auction, and thus reverted back to the savings bank. Banks are eager to unload these Condos because, quite frankly, they are not in the real estate business and have no desire to own condo. Because of this, you can usually pick up a savings bank owned Condo for about 30% less than you would be able to buy it on the open market.

buying REO

The first thing you need to do when buying a savings bank owned Condo is to find an REO listing agent. These are a special type of real estate agent that deals only with savings bank owned condo. The number one reason why you want to stick with one of these specially trained REO agents, is because they will have the knowledge necessary to make sure you get a house that not only fits your needs, but that doesn't have repairs which are going to be out of your budget to fix. In addition, these agents can typically negotiate a better deal with the savings bank for you, than you would be able to find on your own.

A few tips that you should keep in mind when you opt to purchase savings bank owned real estate:

* Hire a buyer's agent who has no connection to the savings bank in question
* Never try to negotiate directly with the savings bank yourself, always let your agent do so
* Don't be afraid to turn down a counter offer
* Look for Condos which the savings bank has owned for a long time - the longer the better, as you will be able to negotiate a better value.

Remember, buying a savings bank owned Condo is a great way to purchase either your first Condo or to purchase investment condo. determine that you have an agent working on your side when you talk to the savings bank, and your next Condo could be a savings bank owned condo.


Related Tags: real estate, foreclosure, flat fee mls


Jolly is the writer of Flat Fee MLS Listing. You can find more information at flat fee mls.

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