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Business Real Estate How To Negotiate to Get the Best Deal on REO Properties
| How To Negotiate to Get the Best Deal on REO Properties |
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| Written by Scarlett Pierce |
| Friday, 16 April 2010 07:34 |
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With the current state of the Real Estate market, a lot of people are looking for tips for buying foreclosures. And they are right, this is a nice time to be looking at buying Real Estate, either for you own personal use or as investment property. But, there are a few things you need to keep in mind when negotiating to purchase REO properties so we thought we would put together some tips for buying foreclosures for you. First of all you must always remember when looking at foreclosures that the house might not have been lived in for quite a few months. If no one has been looking after the property you may have a few surprises in store on that initial visit. Keep an open mind but know that you may have to deal with an exterminator to get rid of rodents or insects. You'll need to have the plumbing checked if the utilities have been off for a while to make certain there were no frozen pipes that may have burst during the winter. And you will need to check the furnace, air conditioning and water heater to make certain they are in good working order. You are not the only buyer who's interesting in buying foreclosures and the bank may receive dozens of offers for the property you are interested in. Generally the lenders take all of the bids into consideration and sometimes they toss all but the two highest offers and then ask each of you to make a "Highest and Final" bid. Either way, with a little research you can make certain yours is the winning bid. Ask your Real Estate agent to find out the lender's purchase price or you can get this yourself from the tax rolls or a title company. Compare the original mortgage balance and also the foreclosure sale price and somewhere in between is the amount the bank will accept. You also want to look at figures for comparable sales in the area over the last 3 months. The market value of the house and the asking price are 2 different things. You'll know you'll affored to boost your offer a little and still be paying less than the house is actually worth if the bank is asking a very low price in comparison to the market value of similar homes within the area. Get a pre-approval letter from your lender AND the bank or lender who holds the mortgage. You'll be able to use your own lender when you close, but banks don't trust approval letters from other banks. So if you've also gone the extra step and can provide a pre-approval letter from the bank who actually holds the mortgage, too, you may look that much better. Get to know various home inspectors and let them know you are looking at buying a foreclosure property and ask them to be available. If somebody else asks for fourteen days to allow time for inspections and you ask for just five then you will really look good to that lender. One of the best tips for buying foreclosures is simply to remember that the bank wants out from beneath that property as fast as possible. The easier you make it for them to award you the property the easier it will be for you to move into that new home. About the Author: Looking to find the best deal on Orlando Condominium Packages, then visit www.floridaforeclosures.me to find the best advice on Orlando Investment Property for you. Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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