We all know we in a buyer’s market, the buyer’s have a buffet to choose from all kinds of the homes. There are a lot of good deals now I found a good REO (Real Estate Owned) home at 418 S Mary Ave in Sunnyvale asking price is only $420,750. It is a 3 bedrooms 2 baths 2 car garage home. The schools are Cumberland, Sunnyvale Middle, Homestead High. This home is listed by REO group of RE/MAX Real Estate Services. Last spring there was a home at the Mary Ave sold for $692,000. This home is about $270,000 lower then last home. This home is a REO home. What is the tips to buy a REO home?
• Finding a good realtor: A good realtor will help you find the home and assist you to submit the offer.
• Prepare the financial statement: Unless you can pay all cash home then you need a direct lender to write a pre-approval letter . You meet with a few lenders to find out one can offer you the best interest rate and term and just work with one.
• Determine the market value of the home: Ask the realtor to prepare a Market Analysis for this home. You use the current available homes, pending homes and sold within 1 years near by homes. Don’t low ball the home. Usually the bank owned home are low. If you think you can still negotiate on top of them you will not get it.
• AS IS condition: Most of the bank owned homes sold “AS IS” condition and without seller’s disclosure either. It is very important to allow yourself time to inspect the home before you commit to buy. That means what you see is what you get. The biggest rish of buying “AS IS” condition home: there are hidden damage to the home. It could be the broken foundation, leaky roof, or unpermitted addtion etc. You need to look carefully before you submit an offer.
• Sweeten the deal: You may shorten the inspection period. Offer to pay half the title insurance cost. Make sure the buyer’s agent follow what requirement was set up by the listing agent. If the listing agent required using BOA to qualify you, you have to do so. This home a work sheet is required, then your agent has to prepare the work sheet.
