After advising a buyer that they needed to make a quick decision about purchasing a property that has been foreclosured they hesitated and lost the opportunity to bid on the property.
Let's start with definitions. Foreclosure is a process by which the property is acquired. An REO (real estate owned) is a bank owned property. Often buyers say they want to buy a foreclosure. What they want is to buy a bank owned property that has been acquired through foreclosure.
Yes, well priced foreclosures in Jacksonville, Florida could be under contract the same day they're listed. If you are interested in buying a foreclosure or assisting buyers with purchasing a foreclosure, be prepared! How you say?
1. Hire an agent who has experience working with bank owned homes. If you are not experienced in helping such buyers, refer them to an agent who does.
2. Know the values in the areas where you're looking for property (research recent sold listings and know what is currently active).
3. Have your proof of funds or preapproval done in advance of the property being listed. And when it's listed be sure it's specific to the property with the price and type of loan.
4. Research home inspectors in advance so you'll be ready to hire them when the time is right.
5. Have your agent put you on an automated listing service so you know the minute a property comes on the market.
6. As soon as the property comes on the market make an offer so you don't lose the opportunity to purchase.
7. Research and hire an attorney to review your contract and title.
8. Be prepared for multiple offers and know the maximum you'll pay.
9. Make an appointment to view the home before preparing your offer.
10. Practice patience. Banks don't work as fast as sellers in most cases.
Be prepared to make a full price offer or an offer above asking price. Why? Banks want full value for the investment as they are trying to recoup what was lost. Usually foreclosures are priced just at or below market value. Obviously, this will trigger multiple offers and buyers will then bid up the price to secure the property.
Research, patience, diligence and the help of a good agent will insure your success in securing a bank owned property!