Offering on Bank Owned Properties

My clients have been asking me a lot of questions about writing offers on Bank Owned Homes.  I want you to know that there is not just one way to do this.  Banks, just like people are different.  They each have there own methods and they each treat buyers differently.  They all do have some similarities.

The similarities are as follows:

1. They have shorter time lines for diligence (you need to complete your inspections and your loan quicker).
2. They won't repair minor issues.  This is a generality and they usually will repair the major items.
3. There is no contact with them over the weekend.  Again there are exceptions.
4. They like simple deals.  The more twists you ask for, the less likely they are to accept your offer.
5. They never take your offer as it is written.  Every bank has their own forms.  Your offer is translated to their form (addendum).  This is why a lot of buyers will write on several bank properties simultaneously without fear of getting more than one accepted.
6. The listing agents have to translate your offer into a "portal".  The "portal" is an internet site designed by the bank to simplify your offer into their terms.
7. They take different time lines to respond and often the response is not written.  The banks ask the buyers to initiate their diligence without a formal written agreement.  Here in Nevada that presents challenges to buyers and their agents.  I haven't had any problems doing this yet, but as a buyer, you need to know that your costs of inspection and appraisal could be at risk if you don't get written approval.  This can also work against the bank as until they give you written acceptance, you can back out of the deal.

Happy Hunting...There are great deals out there now, you just need to know how to find them and how to structure the offer to GET them.