Have you ever purchased a 'mystery gift' from your favorite catalog? You know, pay $50.00 for a $100.00 gift. You don't know what the gift is, but you do know it's a good deal. This is very similar to buying an REO. REO properties makeup the majority of our local inventory and are at great value, but there are risks involved that you need to be prepared for.

REO properties, Bank Owned properties, often have their own contracts and/or addendums. These documents very from bank to bank. I'm sure your Real Estate Professional will review the specifics of these documents, but keep in mind, these contracts were written by the bank, in favor of the bank.

When purchasing an REO property, it is likely that you previewed the property without utilities. Make sure that prior to your home inspection that the water, gas, and electric are on. Even if your confident that you know the condition of the property, get a home inspection. Your home inspector is up to date on codes and will provide you with a full report that can be referenced when planning repairs.  You can budget for the expected, but not the unexpected. 

Plan ahead and be prepared for the unanticipated. In your purchase contract ask your agent about including a Home Warranty Plan. More banks are willing to pay for Home Warranty Plans or your generous Real Estate Agent may be able to assist. A Home Warranty Plan is well worth the money if a major system or appliance that needs to be prepared. 

Keep these items in mind and I'm sure your next real estate purchase will be a success.

 
Posted by Corie Gorham on 01/10/2009 02:19 PM   Comments (0)  
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Corie Gorham

Lodi, CA

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Century 21 M&M

Address: 1510 W. Kettleman Ln., Lodi, CA, 95242

Office Phone: (209) 371-8221

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