Buying Bank Owned Property

Buying a bank owned home, sometimes labeled REO, is very different from buying a short sale, or “short pay” home.

A transaction on a home which is bank owned is usually much easier to manage, and a contract offer on a bank owned home is responded to more quickly than a property subject to a short sale/short pay.

The biggest problem with buying a bank owned home is not the paperwork, per se, but rather the home itself. Many times the home is in poor physical shape, but apparently some banks are taking steps to remedy this problem.

Call, text, or email me today! … I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.

Here’s what I heard from one of our news sources at RE/MAX just yestereday:

As the quality of foreclosures and the communities where they are located has improved, so, too, has interest in them by consumers. To entice those buyers and lessen their inventory of real estate owned foreclosed homes, commonly known as REOs, banks are spending thousands of dollars on some foreclosures. In addition to new paint and carpet, floors are being refinished, old windows are being replaced, and leaky roofs are being repaired.

Now if I were to judge the level of truth in this based on what I saw yesterday, as I was touring five different bank owned homes with a buyer, I’d say there’s some evidence that this is true.

While all of the homes we looked at need some help, one in particular in Lafayette, CO had some obvious repairs, including new carpeting in two of the bedrooms. Steps like this sure make it easier to show and assist buyers in picking out a home to purchase.

In the last several years, I’ve seen a lot of interesting homes, and the bank owned properties are by far, the most challenging to sell when they’re over priced, and in terrible shape.

It’s nice to see some banks getting the homes repaired, and priced correctly. These steps will definitely help move these homes off the market.

Thinking about buying a new home, getting ready to sell, or know someone who plans to move? I think we should talk.

Call, Text, or Email me. I will listen carefully to you.

You may also find my neighborhood profiles, and Boulder business profiles informative and useful. They’re both great ways to learn more about what’s going on in Boulder. Call, Text, or Email me today!

Zachary Epps, GRI, ABR, REALTOR®, full-time RE/MAX professional, and author of the Boulder Real Estate and Neighborhood Guide, The Boulder Condo Guide, and The Home Buyer’s Handbook.

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