Wednesday, July 16, 2008

Las Vegas Bank Owned Properties

Here are a few things to know when dealing with bank owned properties (also known as REO's).

If you are looking for a bank owned property in Vegas use our Las Vegas Home Finder.  We will email you a list of homes and keep you updated as new ones come on the market.  Click here to begin (all we need is your email address, name, and what you are looking for).

1. Patience is required.
It can take a week or more before you get an answer to your offer. Remember, you are dealing with a bank (not an ordinary seller). Banks like to hold out for the best offer possible. They will often wait to receive multiple offers. You might put in your offer and find out a week later that you are being asked to re-submit your "highest and best" offer. Be patient and go along with the process.

2. There are how many offers on this property?
Banks price their properties below market and often get multiple offers. This is especially true of properties that are in decent shape. So, you may have to make several offers on several properties before you get what you want. Remember, patience, patience, patience.

3. Your rights? Read, read, read.
Once your offer is accepted the bank will send you an addendum to sign which generally negates all of the terms in your original offer. It is important to carefully read this document (or get an attorney to review it) to see what rights you are signing away.

4. How attractive are you?
Banks, like any other seller, want to make sure you are going to close. When you submit your offer most banks require that you provide a pre-approval letter from your lender or proof of funds (if you are paying cash). So, get to your lender and start the process as soon as you decide you want to purchase a home. Also, some bank owned properties will require that you get pre-approved with them. However, you are not required to use them as your lender.

5. It's not all bad news.
Not everything is dire when dealing with a bank owned property. There is room for negotiation. Banks (most) will still pay closing costs and for a home warranty. Yes, you can still do your due diligence - inspections, etc. Also, banks are required to give you a homeowner's package (although they may make you pay for it).

Any other questions?

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