Purchasing REO Property

Considering the purchase of Foreclosure property? Here are some steps to follow to help you achieve your goal. Foreclosure and bank-owned (REO) listings come and go in every market. How can you find them? Simple: call a real estate agent 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 stay 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. 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, CMAs, 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 an 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 can help the bank decide in your favor. Good luck!

Buying a bank-owned home takes patience, but with a clear plan and a steady agent in your corner, it’s very doable. If you’d like to talk through your options or have me set up a search around your criteria, reach out anytime through reynoldsrealty.com or call/text 941-737-6562, no pressure. — Linda Reynolds, Reynolds Realty Gulf Coast