Home > Buying a Foreclosure > TOP 3 THINGS to consider when buying bank owned,REO,distressed homes

TOP 3 THINGS to consider when buying bank owned,REO,distressed homes

by: Regina Flores RE/Max Direct #(760)788 0721
So let’s face it this Real Estate Market looks like it is here to stay for awhile. If you are a buyer, chances are you will be looking at bank owned and REO homes. Why not, there are some great deals! But some may be too good to be true. Buyer Beware:
Not all, but the most crucial disclosures in my opinion, i.e. Transfer Disclosures etc..What this means to you the buyer is that since the bank did not live in the home, they don’t have to tell you what may have occurred in the home. A seller owned home would have to fill out the disclosures telling you about home insurance claims, lawsuits, neighbors, water leaks and all that good stuff we want to know about when buying a home. So do your due diligence and have the home inspected thoroughly. You can have additional inspections like electrical, roofing, geological and more. Just be sure to satisfy self, bank will not. A buy on these homes can be risky because many issues remain unseen such as cracked slab, water leaks, mold, soil, flooding etc.
In most cases you will be given the front door key, and that’s pretty much it because that is all the bank may have when home went through the foreclosure. In most cases there are NO warranties or information regarding appliances or other items in the home that a normal seller would have given you. Typically the bank will not do repairs either so you may have repair costs going in.
Although the home is sold “AS IS” you can still ask for items or repairs you feel are safety related or important to you. It’s worth asking, the bank can always say “no” but sometimes they are reasonable and agree to carpet, closing costs, termite repairs etc…Just don’t get too crazy, remember the bank has done their homework and comps, they generally list the home competitively, which is why they go so fast in the market. And you may be competing with other offers so make it your best offer.
These are my top three. But there are many other things you should know click on my Ramona Real Estate Resource Center for more:
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copyright reginaflores-2009

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