Tuesday, July 16 2013
Last month’s RealtyTrac foreclosure roundup showed that for the first time in a while foreclosure activity across the nation was on the increase. Largely due to an 11% month-over-month increase in bank repossessions (REOs), U.S. foreclosure starts increased 4% from the previous month. It wouldn’t be surprising if that kind of news winds up resulting in renewed buyer interest in the area’s bank-owned home market.
Daren Blomquist, RealtyTrac’s vice president, had previously pointed out the state of the market. “While distressed properties — whether bank-owned, pre-foreclosure or short sales not in foreclosure — are still selling at a significant discount compared to non-distressed properties, average distressed property prices are increasing in many markets thanks to strong demand and limited inventory.”
Achieving the best end result from today’s REO prospects does take skill in dealing with the bank. Naturally, it’s a good starting point to team with an experienced agent. Knowledge is power, and being able to rely on a professional with a recent history of successful negotiations is the surest way to approach a bank. The guidance you get can make all the difference when it comes to writing a winning proposal.
Do consider properties that have been slow to move. Even if some bank-owned homes in Evansville are flying off the market after multiple offers, properties with a history of failing to sell can be your ripest targets. Don’t automatically be put off by the prospect of homes that clearly need some repairs. It may be possible to still save handsomely after adjusting for refurbishment and maintenance.
If you find a bank-owned home with potential, it’s important to steel yourself for the possibility of being outbid by a less cautious buyer. If you’re also prepared to take your time – to really play hardball with the bank — you may lose any given property, but are in the right frame of mind to make the most of a local bank-owned home opportunity.
Whether you’re looking for a bank-owned home in Evansville – or just a great property – I’m here to help my buyers get the best deal possible! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com
Wednesday, February 13 2013
Yes, foreclosure rates across the country continue to drop, yet bargain-hunters can take heart: there still remain a goodly number of bank owned properties in Evansville. According to the National Association of REALTORS®, ddistressed homes accounted for 24% of national December sales; a large proportion, but significantly down from the 32% of just a year ago. Also known as “real estate owned” (or REO) properties, it is well-known that these homes can often be bought at a significant discount -- frequently by as much as 16% – 17% below market.
Before anyone updates his or her Facebook status to tell the world about the millions they are about to make by ‘flipping’ foreclosures, it’s good to bear in mind some key differences between buying regular homes and bank owned properties. To make an REO purchase successful, potential buyers need to plan for those special factors.
· Count on bank owned properties being more difficult to finance due to guidelines set by lenders: requirements that can prevent REO purchases from going through. Due to a property’s condition (which can sometimes be poor, even non-habitable), FHA and VA-approved buyers must gain pre-approval before submitting an offer.
· Bank owned properties are generally sold “as-is", often with fewer disclosure requirements. I always urge my buyers to be diligent about pre-purchase inspections – and with REOs, it’s doubly important. Purchasers of bank owned properties can have little or no recourse if defects or maintenance issues are discovered later.
· Lenders can run into additional costs when selling REOs -- costs involving liens, evictions, property taxes, insurance, etc. This motivates them to try to squeeze as high a price as possible from the transaction. In addition, banks may charge additional fees for extended closing and other services.
All of which goes to the point of how buying bank-owed properties in Evansville differs from run-of-the-mill home purchases…and why having a real estate agent well-versed in bank owned properties is so important. If you would like a look at the options currently available among local REO offerings, give me a call today! You can reach me on my cell phone at