Many bank owned homes for sale are beautiful homes, yet don't have bargain prices. You can negotiate with the bank to get a real estate owned (REO) property at a price both of you will approve.
Many bank owned homes for sale are beautiful homes, yet don't have bargain prices. You can negotiate with the bank to get a real-estate-owned (REO) property at a price that both of you will approve.
Bank owned houses are often listed with prices below market value, so you may be competing with other buyers to get the home. While the bank or lender wants to get the home off its asset list, demand for the property may drive up the price. If there's no competition, negotiations may be much easier. Interested in other types of foreclosure listings? This guide teaches you how to find foreclosed homes and buy them.
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Deciding how much you should offer on a bank-owned home may be the most difficult part buying one. If you have the property inspected and appraised, you may find that it is overpriced. The professional inspection and appraisal give you documentation offer the bank a price lower than its listing price. However, the bank may still refuse your offer, in which case you are out the money for the property research.
It is not a good idea to simply present the bank with your offer. You will most likely be required to provide a pre-approval letter that shows you have financing in line - in addition to the inspection report and appraisal, if applicable. Your offer should also include estimates for needed repairs if your are asking for a price reduction based on those renovations.
If your offer is rejected, you may ask the bank to make repairs, let you make a lower down payment, or have the bank pay for a one-year warranty on the home. Since many bank-owned homes for sale need repairs, the lender is more likely to reduce its price than pay for repairs. If the bank refuses your counter offer, you might wait a month and make your offer again if the property hasn't sold. If the offer is still not accepted, you may need to find another home to buy. Reply! has foreclosure listings that include bank owned homes. Get free foreclosed real estate listings here.