Important Buyer Information in this Bank Owned, REO, Foreclosure Market

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Buying a home can be a significant investment and stressful for most, especially in today’s REO, Bank Owned, Foreclosure and Short Sale market.  This is definitely a SELLERS market with a BUYERS price.  It will take time and will require great real estate knowledge.

One of the most important aspects of buying a home is not only the act of buying the home, but actually getting properly pre-qualified to buy the home.  As a buyer there are many types of loans you may qualify for depending on credit and income.  The best way to select a reputable lender is by referral or through your trusted Real Estate Agent.  Be sure to ask the loan broker for the different programs that are available –for example, FHA, Conventional, VA and Cash.   Without the proper documentation, i.e., pre-qualification letter, proof of funds and earnest money deposit, the seller (this could be the bank, asset management company or individual) may not even look at the offer or simply reject the offer.   Proper up-front documentation will not only ensure your offer is submitted but may get you put on top of the stack if the other potential buyers have not properly prepared or their buyers agents haven’t educated them in the buying process.

Buyers please keep in mind that Bank Owned Homes are generally sold in “As Is” condition, which means the Seller is not going to do any repairs on the home prior to you purchasing the home.  The bank is also “exempt” in regards to disclosing any prior or current knowledge of the home (what may or may not be wrong with it).  Be sure to always get a thorough home inspection by a Professional Home Inspector.

Most of the time there are going to be multiple offers on the property.  So how do you separate yourself from the other offers???  Terms.  Here are some ideas that will help make you offer very appealing to the Seller.

1. Make your Earnest Money Deposit (half or the entire amount) non-refundable after your inspection period is over.
2. You can always increase your deposit during the middle of escrow.
3. Shorten your inspection period.
4. Make your loan not a contingency of the sale.
5. Make the appraisal not a contingency of the sale.

Most importantly, you are going to need a very assertive Real Estate Agent like myself.

To see all homes for sale in San Diego County visit HouseCallRealtyChulaVista.com or HouseCallRealty.com