This is a new topic for a lot of people who are in the market to buy a family home. Bank Owned Properties have traditionally been an area that Real Estate investors dabbled in. More properties are finding higher prices from being listed with a Real Estate agent than they could sell for at a Real Estate auction.
Auctions are something to avoid unless you can afford to lose money. I’ll do another post about that. With REOs, Bank Owned Properties, listed through a Multiple Listing Service, you have the right to an inspection, appraisal, negotiation, and in many cases a stronger title position. Title is a topic for another time, it is a very complex issue.
There is a strategy to buying Bank Owned, that I have repeated in this blog a number of times. The Bank wants to clear the property for as much as the market will bear. That’s why listing the property with an agent gets them more than from a person paying cash, at an auction.
In that regard the thing you have to your advantage is being prepared to buy. Get financing from a lender who can perform. Give the lender all of your information, set up some price parameters, and get pre approved for a loan. Figure your worst case scenario, and get your lender cracking on the best deal you can make on a certain price point.
When you shop, be prepared to buy. Be prepared to negotiate. Make your offer fair, but reasonable to you. Never let the bank dictate terms. Make your offer strong, with a good Earnest Money, and hammer on the fact you are able to close.
You may need to make several offers over the course of time, or something may hit right away. Just be ready, be prepared.
About David Losh
In 1984 I got my Real Estate license and worked in a small company called Advance Properties. The owner was extremely interested in Real Estate, building, and land development. Most of his work was concentrated North of Seattle. Since the 1970s I had worked for Real Estate agents in Seattle as a contractor, mostly preparing properties for rent, and sale.
After a few years my skill level increased considerably concerning land use, building code, and development practices. Escrow, and lending offices were housed at the Advance Properties building so it was easy to get involved in all aspects of Real Estate. It was very much a family owned, and operated business.
Over the years my Real Estate license has been at a variety of Real Estate companies, and offices. Nothing compares to those early years, or that sense of family. Real Estate has gotten to be corporate owned.
My hope with this blog is to share with you some of the things I've learned. If you have Real Estate needs, or want contractor help, I refer freely to what best suits you. If you should choose to work with me you'll find a great resource.
My Real Estate license is at Skyline Properties in Northgate. Skyline is a locally owned company that is a desk fee office. There is a wide variety of diverse agents. It helps me with some of the other projects that I have, and mentoring that I do, to be able to work with people from other cultures.
Here in Seattle we are close to Vancouver BC and are the gateway to China. Boeing has a great trade relationship with China, as does Microsoft have with all of Asia. We are a culturally diverse community, and it helps me to be invlolved.
