Negotiate with Plano REOs
In the real estate arena Real Estate Owned (REO) are when a bank or mortgage company has gone through the foreclosure process, no one bought it at the foreclosure action and the bank became the owner of that property. Now the bank must sell that property. If the listing is relatively new on the market, it is most likely that the bank will not come down much, if any, from its asking price. You will have greater negotiating power if you go after homes that have been on the market for more than 30 days. Follow these tips: · Most lenders and banks are moving away from paying typical buyer closing cost. Many fees such as transfer taxes, county and state fees, are due by the buyer and not the bank. Generally, banks do not pay for pest report, repairs or warranties. · Banks negotiate bulk discounts with escrow and title companies. If you decide to use the bank's title or escrow company, review the fees that those companies will be charge you. Usually, fees not paid by the bank but by the buyer will be higher because title and escrow often make up those discounts by charging buyers more. · Many banks will not sign a counter offer until all terms are mutually agreed upon between the parties verbally. · Generally the banks will allow Board of Realtor contracts to be used but special addenda provided by them must be attached to the standard purchase contract. Read it thoroughly and ask a real estate attorney for advice if you do not understand it. · If the bank won't budge on your offer and you receive a rejection, wait 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted. · You might wait 10 days, or more, for a response to your offer from the bank. You must be patient as you are usually dealing with a conglomerate, not a regular seller. · The bank may ask for you to submit a loan application so it can prequalify you; however, you are not obligated to obtain your loan from that bank. · If you cannot close by the predetermined closing date, the bank may charge you a penalty for each day you pass that date. Make sure you have a pre-approval letter from your own mortgage company before you submit an offer.There are drawbacks to buying an REO or Plano Foreclosure, like waiting for a long time to get a response from the bank. Many of these homes are dirty and in disrepair. You will be asked to buy the home "as is." You can make your offer subject to a home inspection. Although the bank will not do any repairs you will have the right to back out if the home inspection reveals some serious defects. The best way to protect you while navigating through the Plano Real Estate market is to retain the services of a professional Plano Realtor.
Comments