Over the last year or more, there has been a shift in the real estate market, with the number of homes that are short sales and bank-owned foreclosures growing by the day. As a matter of fact, in reviewing the number of active homes for sale in Central Florida, I estimate that more than 40% of the inventory that is available for sale is either a foreclosure or a short sale.

With that being said, one of the most notable attractions to foreclosures for Buyers has been the fact that they are often listed at prices that are 20%-40% less than other comparable active listings that are for sale within the same community. Banks and those real estate agents who are representing them have taken this approach to pricing in an attempt to create interest from buyers who will recognize the value, write an aggressive offer and agree to follow the "less than buyer friendly rules" that are required when purchasing.

This trend is certainly noteworthy for Buyers, as it's becoming more obvious each day that the "those who have the gold make the rules" theory is in full force when it comes to buying a bank owned home.

As evidence of how drastic this shift has become, below are a few of the more common "rules" that banks are now requiring Buyers to follow when submitting an offer on their REO (real estate owned) properties:

• Provide a pre-approval letter from the selling bank's preferred lender. Although the Buyer may have a pre-approval letter from their own lender, many bank-owned homes (especially those owned by Countrywide) will require that the Buyer get pre-approved by a designated lending representative before the offer is submitted to the bank for review.
• Accept the house in as-is, where-is condition. Simply put, the bank will make no repairs to the property, even if they are required by the Buyer's lender or FHA/VA to obtain the loan.
• Agree to pay outstanding Homeowner Association fees, without disclosing how much is owed.
• Agree to pay for documentary stamps on the deed. In Florida, that fee is .70 per $100 of the sales price. For Buyers purchasing a $200,000 house, those fees will be $1,400.
• Agree to have all inspections completed prior to offer submission. This requirement thereby eliminates the "inspection" contingency in the contract.
• Agree to pay a per diem charge for each day after the closing date if the property does not close, regardless of why it didn't close.
• Agree that the property must be on the market for a minimum number of days before the bank will consider any offers.
• Agree to provide their escrow deposit in the form of a cashier's check to the seller's attorney.
• Agree that once the Buyer's offer has been verbally approved, that they will then be required to accept additional terms and/or conditions on an Addendum that will follow. Some of these addendums are so completely favorable to the Seller (Bank) that the Buyer might feel as though they are waiving their right to breathe for fear of their offer being rejected.

Regardless of whether you think these rules are "fair" or not, the banks and their agents are not making exceptions. They are what they are and Buyers need to know that the "Golden Rule" as they once knew it, has a whole new meaning today.

If you are considering buying a foreclosure (REO) property in Central Florida, you need to know what's expected.

As a full-time professional REALTOR with experience in foreclosure sales, I'd welcome the opportunity to further educate you on what you should and can expect when buying a home that's owned by a bank. Feel free to call or text me at (321) 377-0157 for a free consultation.

LaShawn Norden, PA, REALTOR, RE/MAX Central Realty, (321) 377-0157, LaShawn@LaShawnNorden.com, www.LaShawnNorden.com