Purchasing REO Property
Considering the purchase of Foreclosure property?
Here are some steps to follow to help you achieve your goal.
The market is being bombarded weekly with new Foreclosures in every area in the USA. How can you find them? Simple, call a few real estate agents in your area and ask them to send you daily listings that meet your criteria, don’t be vague, be as detailed as possible and within a realistic price range. In other words if you qualify for a $100,000 loan don’t focus on $ 1,000,000 homes, odds are you will never get an offer accepted and if you did we are talking about hundreds of offers. That takes time and energy and you will probably end up losing your agent.
Once you start receiving the list contact the different agents and see who gives you the best serves. I recommend that you stick to one agent, why? Because you will need a lot of hand holding and you are looking for an advocate, someone that will go the extra mile. Every property you like, you will need Market Reports CMA’s, information, etc. In addition you will need to be looking at property weekly with your agent. It is important for both of you to see eye to eye. Remember you are looking for the diamond in the rough and believe me they are out there you just have to look.
The most pressing piece that many folks ignore is that you have to, no way around it make offers every week. The more offers the better; your agent will guide you with the right wording to avoid having to commit to all accepted offers. The bottom line is that if you don’t make offer it’s impossible to make a deal.
Your broker will help you put together a well packaged offer. Make sure you provide the pre-qualified letter, proof of funds, etc. The better you look on paper the easier it will be. If you can close in 10 days, put it in the contract. Every detail helps the bank decide in your favor.