The TOP 5 Items you need to know if you want to buy a BANK OWNED HOME!

By
Real Estate Agent with Godzyk Real Estate Services
http://actvra.in/mWj

As a leading Listing Agent of Bank Owned homes in the Manchester NH area, i often get flooded with questions regarding foreclosures. I have put together the TOP 5 items you need to know if you are looking to buy a bank owned home.


TOP 5 ITEMS YOU NEED TO KNOW IF BUYING A BANK OWNED HOME

1. GET PRE-QUAILIFIED
: Before even looking at a home you should get pre-approved for a loan. No bank will look at your offer without it. Meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any mortgages that you may quailify for. You should then tell them you are looking at bank owned homes so they can provide you with a list of what condition the property needs to be in for you to be able to get a mortgage.

2. WHO IS REPRESENTING YOU? :  You should know that the listing agent represents the seller. there are some advantages working directly with a listing agent if you feel comfortable with buying. If not you may want to hire a buyer broker who is WELL EXPERIENCED in bank owned home sales. In inexpereinced agent can hurt more than help.  You can usually hire a buyer broker at no cost to you, they get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing. This way they can get the information for you and you will have someone assisting you through each step of the buying process.

3. MAKING AN OFFER THE HOUSE: Before making your offer you should know that most houses are sold "AS IS". The banks will not re-negotiate after a home inspection or make any repairs. Your best chance to get the bank to make repairs or credit you for repairs is in your initial offer. You shoud  inspect the property before you put in the offer. If you dont want to spend the money for some reason, then when looking at the home you are going to need to look at the well, septic, roof, siding, windows, heating system, look under the sinks, in the basement for signs of water or mold, stains on the ceilings and anything that sticks out or if you are getting an fha loan, any safety issues.

Before making an offer, you should assess what the house is worth in todays market and deduct for any repairs needed. Do not base your offer on a percentage off an asking price. You dont know if the bank priced the house higher than market value, already at market value or priced it way below market value.



4. THE OFFER: In your offer you should make sure you attach your pre-quailification letter, you should make sure you put a closing date of 30 days or less, make sure your deposit is at least 1% of the sales price and it is a cashiers check. Try and avoid any contingincies other than an inspection and mortgage contingincy. Do not put any expiration dates in for the bank answering the offer.

5. KNOW THE TIME LINES: You should know that each bank works differently than any other. The Listing agent has a great deal responsibility to assist the asset manager and move teh offer through the process of approval or counter offer. You can easily ask the listing agent what the average is for the bank. Banks can average 1-3 dasy to answer an offer. Most of my banks offer within 1 day and alot of times it is the same day. Allow 3-7 days from acceptance to 
get you the signed purchase and sales. The one thing you can do to speed up your own closing is to make sure the foreclsoure deed is complete and recorded, otherwise this could hold up your closing.





If you are looking to buy or sell a home in New Hampshire, please call us first. We strive to provide the best in personal and professional service through each step of the buying and selling process.  

We offer * FREE *  BUYER REPRESENTANTION - ask us how we can help you buy a home here in New Hampshire. (*please contact us for details and conditions*)

PLEASE SEE SOME OF MY MOST POPULAR BLOGS

 
 
ONE OF NEW HAMPSHIRE'S LEADING AGENTS FOR SHORT SALES AND BANK OWNED HOMES...

If you are Looking for a Real Estate Agent you have come to the right place. Scott Godzyk is a Full Time and Local agent ready to serve all of your Real Estate needs through each step of the buying or selling process. We are proud to be locally owned and operated.

If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you.

Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Ssles, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email sctprop@aol.com. his website is www.ScottSellsNH.com.

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Jim Shepherd (360) 229-2235 03/17/2012 12:47 PM
Topic:
Home Buying
Location:
New Hampshire Hillsborough County Manchester
Groups:
"Whacked"!!!
The Art Of Marketing You
Realtors®
Diary of a Realtor
BananaTude
Tags:
homes
best
top
new hampshire
nh
manchester
agent
real estate
realty
realtor
godzyk
scott
reo
advice
tips
foreclosure
bank

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
63,700
Brett Reichel
Pacific Residential Mtg., LLC - NMLS 1477 / WA CL-1477 - Clackamas, OR
MLO 210215

Great advice - if you are doing a 30 day close - you should have your home inspector chosen in advance and on speed dial along with a back up.  Most buyers want to have the inspection done before they order the appraisal.  With the refi boom, you could be cutting yourself short if you don't plan carefully!

 

Oct 28, 2011 05:36 PM #1
Rainmaker
1,160,650
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Great advice Brett, Thank you for the comment

Oct 28, 2011 06:41 PM #2
Rainmaker
2,114,776
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Good information for home buyers and real estate investors. Everybody is looking for bargains in the inventory of lender owned foreclosures.

I hope the snow is not too bad in your area this weekend.

Orchids in the Conservatory at Lewis Ginter Botanical Garden, Richmond, VA

Roy and Dolores Kelley Photographs

Oct 28, 2011 09:16 PM #3
Rainmaker
1,105,209
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Scott -- good checklist for buyers considering a bank owned property.   I know in our area almost all REO properties will have special contract addendums and the bank may not be willing to pay for certain costs that might be covered in a standard sale.  Of course, everything is negotiable but letting a buyer know up front that a bank may delete such clauses -- better to be warned upfront than be surprised.   

Oct 29, 2011 12:29 AM #4
Rainmaker
1,160,650
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Thank you for the comment Roy, 6 to 10 inches, problem is leaves ar en the trees still and hey expect wide spread power outages.

Oct 29, 2011 08:33 AM #5
Rainmaker
1,160,650
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Michael i have to work with bank addendums every day, the easy ones are 5 pages, the tougher ones are up to 20 pages.

Oct 29, 2011 08:34 AM #6
Rainmaker
811,015
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales a

Terrific list to share with REO buyers Scott, nicely done.  I hope you survive the show and the power outages.

Oct 29, 2011 03:50 PM #7
Rainmaker
1,160,650
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Al i am home from showings and staying out, please no power outages... we have had way too many of thise the last 2 winters, it is too early

Oct 29, 2011 05:12 PM #8
Rainmaker
494,252
C. Lloyd McKenzie
Prudential Allstar Realtors - Albuquerque, NM
MBA - Prudential Allstar Realtors -

Good Morning Scott:

Another Excellent post. Great checklist for anyone considering the purchase of a bank owned home

Jun 24, 2012 08:44 AM #9
Rainmaker
1,160,650
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Thank You for the comment C. Lloyd

Jun 24, 2012 09:08 AM #10
Post a Comment
Spam prevention
Show All Comments
Rainmaker
1,160,650

Scott Godzyk

One of Manchester NH's Leading Agents
Ask me a question
*
*
*
Spam prevention

Additional Information