7 Useful Tips for a Buyer that is considering an REO property:
1. The Best time to make an offer on an REO is toward the end of the month. Banks and financial institutes like to have as many REO properties out of their available inventory by the end of the month.
2. Consider the area that the REO is located and current market conditions in that area. If the community that the REO is located is well maintained, mostly full time homeowners versus tenants, the REO property has a much better opportunity to appreciate higher in value.
3. Buyers of REO properties use information provided on the listing or Internet but this information may be misleading or incomplete, always visit an REO property before making an offer and don't rely on photos.
4. Work with a real estate agent that understands the market and the REO process.
5. Become familiar with a strategy on what Price to offer on an REO. Look at previous REO sales to see the list to sold prices. Are there other REOs in the area.
6. Pre- approvals or proof of funds need to be readily available and must be sent in with an offer on REO properties. It also pays to check and see if the Bank only accepts pre-approvals from specific lenders, as a pre-qualification before accepting an offer.
7. Knowing a Qualified Home Inspector, carpenter, plumber or electrician, can help the buyer in preparing their offer and also alert them to the cost of needed repairs.
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