One for the Money, Two for the Show….
4 Comments Published by Elaine Carlson April 10th, 2008 in Buyer Advice, Financial, Finding A Home. by Elaine Carlson
This is an open letter to Buyers. If you are looking for foreclosures or REOs (bank owned real estate) in Palos Verdes or the South Bay, here are some ideas to help you…
One for the Money -You must have your finances ready. The Bank-Seller has already experienced shaky finances from the prior owner. Get pre-approved from your lender and have them pull your current FICO scores. You will also need to show an account statement indicating where your down payment will be coming from.
Two for the Show -Have your Realtor show you properties in the area and price range of your interest. Look at all the properties that have sold during the last six months. Your Realtor can provide you with a copy of those listings.
Three to Get Ready -Review all the sales contracts and documents with your Realtor so all your questions can be answered, and decisions (i.e. how many days until close of escrow, how long your contingency periods will be, etc.) can be made prior to actually writing the contract. When you find the right property, you can focus on price.
Four to Go! -When you find that REO that meets your needs, things will usually move pretty quickly. The bank typically prices the property lower than prior sales as they want a quick sale. There can be multiple offers and the bank sometimes responds as quickly as 24 hours after receipt of your offer. If you have done your homework, you can have your completed offer with full documentation to the bank sooner than your competition.
4 Responses to “One for the Money, Two for the Show….”
- 1 Pingback on Apr 26th, 2008 at 5:36 pm
- 2 Pingback on Feb 18th, 2010 at 4:13 pm
A well written, concise primer for buyers considering an REO purchase. We’re finding the competition to be quite keen in the Irvine area–with multiple offers not uncommon. The more prepared the buyer, the better the chance for success in coming out on top.
It seems as though San Mateo County coastal buyers are beginning to inquire more about pre-foreclosure and bank-owned properties, though interest has been minimal so far. Banks are now hiring brokerages with a local presence to help sell their inventory. Currently we still have a growing number of bank-approved short sale listings, though small compared to other areas of CA. Thanks for the tips on how best to proceed in your area.