- The first thing you should understand about purchasing a foreclosed/REO property is that the bank wants to sell the property quickly, which is why Cash and Investor buyers often end up with these properties. Having said that, it’s important that you are financially qualified to purchase and close on a foreclosed property.
2. Property Condition
– Isn’t this where the kitchen is supposed to be? More often than not, a foreclosed property will be missing items (or even an entire kitchen) or have hidden defects. Most REO properties are offer in its “AS-IS” condition, but allow the buyer to inspect the property and make a decision as to whether they want to proceed with the sale, so it’s important that you hire a professional to perform a property inspection.
3. Budget Carefully
– You should anticipate the need for a repair or renovation budget when considering purchasing a foreclosed/REO property, as many of his homes are distressed, damaged, not upgraded or some combination of thereof. You’re budget should be realistic and take into consideration your monthly mortgage payment (that is if you are financing the purchase).
4. Use Professionals
– Expertise is an important characteristic when buying property. You want to use professional inspectors, attorneys, closing agents and Realtors because expertise makes the difference between a job well done and a job overrun.See the house for yourself
– You can search all listed properties and neighborhoods in South Florida on our website “Search MLS
5. Put your best “Offer” forward
– REO sellers want the highest and best offer and you should be prepared to put your best “offer” forward
. It maybe a feeding frenzy right now for distressed properties, but don’t be rattled when making your offer, just make sure it’s you’re highest and best offer.