Why Buy an REO?
Your Time is Now” Home buyers are at a unique crossroads in our country’s history. Most experts agree that the value decline in many real estate markets across the country has bottomed out. This value repositioning has now made it possible for millions of new buyers to afford homes that a few years ago were out of their price range. Now, almost anybody that can qualify can find a home in the area they want and at a price that they want.
The Edwards Real Estate Group can offer buyers the opportunity to get the most for their housing dollar by offering the right home in the right area and the right price range. Just go to the our property search engine and enter the information to find the home of your dreams. It costs no more to purchase an REO asset, in fact it will likely cost you less than a comparable home offered for sale by an owner/occupant
If you are worried about financing, please don’t. There are a number of financing programs that are available for buyers in every price range. Why there is even financing available for buyers who want to purchase and fix up the home the way they want to.
Tips for Buying an REO
Get professional assistance. Don’t try to navigate today’s complex waters without a captain. Use a Realtor®.
Know what you can afford. Take into account not only the price of the home but the costs incurred in closing that sale, moving to your new home and fixing it up the way you want. You are much less likely to suffer “buyer’s remorse” when you know that you are making a sound financial transaction.
Get pre-approved for your loan. It will put you in the best possible bargaining position when the seller knows that you have already approved to purchase the property you are negotiating for.
Consider a home inspection. The cost is negligible when compared to the overall investment and it can call your attention to deficiencies that you should be aware of when trying to negotiate the best price. Remember, the seller of REO property didn’t live in it and doesn’t really know if there may be hidden defects. A qualified home inspector can be your best friend and your real estate agent can recommend several local inspectors from which you can choose.
Purchase a home warranty. Much like the property inspection, the cost of the home warranty in relation to the magnitude of your home purchase is small. Even with a home inspection things can happen during the first and subsequent years that can be covered and save you thousands in the long run.
Be realistic. The seller of the property you are interested in has paid a lot of money to local value providers in order to know just what the property is worth. They know, why shouldn’t you? Make sure that your broker provides a price opinion showing comparable properties that are on the marker now and have been sold in recent months. Coming in with a reasonable, defensible offer is much more likely to get you a better deal than simply trying to “low ball” the seller in hopes of getting a bargain. The seller will not take you seriously and while you are trying to get the deal of the century, a more reasonable, well informed buyer may purchase the property before you can.
Questionable Foreclosure Practices Are Being Addressed
Five of the nation’s largest banks met in late March along with state and federal officials to discuss a settlement that aims to correct questionable practices in the mortgage industry. Reaching an agreement could resolve foreclosure procedure problems sparked during the robo-signing scandal. While most of the meeting focused on servicing standards, the hot topics of debate included reducing loan balances, broad-based write-downs, and the extent to which legal claims will be dispelled.
The Obama administration is encouraging a quick settlement in order to prevent additional delays to the housing market recovery. Their concern, according to RealtyTrac, Inc., is that “foreclosure filings have decreased immensely in the past six months to the lowest level in three years in February.” James Dimon, chief executive of JPMorgan Chase & Co, concurred, stating that, “Any settlement should produce rational policies that work for the American public. That’s what we need.”
While tangible results have yet to be seen, the good news for homeowners, buyers, and sellers is that all parties involved are taking steps in the right direction. Their focus is on a solid resolution to the technical issues that are creating a bottleneck in the disposition of foreclosures — a prerequisite to the recovery of the housing market.
Source: The Wall Street Journal, KW TMIR April 2011