I have represented many Northern Virginia Buyers over the past three years who have purchased REO property.  REO stands for Real Estate Owned.  You many know these as foreclosures. 

When purchasing an REO, the addendum the bank will have you sign supercedes everything in the contract offer you submitted.  The bank guarantees absolutely nothing.  They may charge you a per diem fee of $100 a day if you fail to settle on time.

It's good to know these things up front so you can know whether an REO property is right for you.  And to have your Buyer's Agent present an offer with realistic settlement timelines.

Via Richard Weisser Coweta Fayette Real Estate:

The addenda always control the agreement.The scenario is played over and over across the land as bargain-seeking homebuyers attempt to purchase a foreclosed property.  A real estate agent constructs an offer for the home, and the offer is “acknowledged!”

But first there are a “few” addenda that must be signed before the deal is done. And while it may be true that the seller will only convey the property under their terms, buyers need to understand the absolute fact that the addenda CONTROL the agreement.

And these addenda are so comprehensive that in most cases, they override almost all of the language in the original offer. It is not uncommon for the addenda to be many pages longer than the original Purchase and Sale Agreement.

The signing of these instruments, while obligatory, is not perfunctory. A buyer needs to carefully read the addenda and understand them before moving forward with the purchase.

Because although the terms set forth in the addenda may be considered to be very seller-friendly, the purchase can still be a bargain for the savvy buyer.

And that can make all of the trade-offs pay off in a big way!

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park.

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Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header photos taken by Chris Ann Cleland.

The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.

 

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Chris Ann Cleland, Associate Broker, Northern VA

Bristow, VA

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Long & Foster REALTORS®, Gainesville, VA

Address: 7526 Limestone Drive, Gainesville, VA, 20155

Office Phone: (703) 402-0037

Cell Phone: (703) 402-0037

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