What to look for when buying a Bank Owned in Newport Coast
Even though the market looks like it has bottomed out and on a mild increase, there are still bank owned that can represent a bargain. But its not a bargain if you dont know what to look for and watch out for.
Bank owned ( or REO's meaning Real Estate Owned) can range in size and price and with record low interest rates, even if they drop a shade more you are still getting a deal if the rates raise. We are at a 50 year low. You wont see this again in your lifetime. It is a great time to get off that fence and start getting serious about buying.
When you do start to look ,Its not a bargain if it costs you an arm and a leg to bring it up to value. There are things to watch for by looking for things that need repair:
1. Look in places you usually would look. Ceilings for leaks, walls for dark marks (mold) and cracks, under sinks for water stains, walk the floors for uneven level changes, take a few sniffs see it you can detect any odors.
2. Check tax records to see if the amount of bedrooms and baths match the home. Then if different check to see if it is permited work.
3. Check the outside see if there are cracks, settleing signs, ponding of water, signs of termite damage, look at roof for missing tiles
4. Look in the attic for water stains (signs of roof leaks)
5. Check fireplace see if pulling away from the home,
6. You are not a professional so have a home inspection to find all that you may have missed.
Then get estimates from a professional who can give you the right cost. Banks will do the bare minimum to get it ready. They are in the business of lending on homes not owning homes so they just want to dump it and move one.
Be smart when buying an REO. Also use a good experienced agent. It cost you nothing to use the best. The Banks pays for it
Marlene, Tony and Mike