What are REOs (Real Estate Owned)? REOs are already foreclosed on properties and are Corporate Owned by a Bank or Asset Management Company. Foreclosures in Venice Florida can afford buyers a bargain, but today's home buyer needs to know how the game is played and understand that Foreclosures are not like regular residential real estate transactions.
Tips for buyers who want to have a successful foreclosure transaction:
• Cash is KING, pre-approved financing is less alluring. If cash purchase get a verification of funds (bank statement or letter from financial institution on their letterhead). If financing make sure they are using a direct lender, not a mortgage broker. Get written pre-approval letter. Work with Listing Agent and Lender to confirm that REO properties is financeable (some are not).
• Avoid low balling; properties are usually priced to sell. In the Venice/Englewood areas our REO's typically sell 5% - 25% above list price. Pull sold comps up of recent foreclosures to help prove to your buyer if they want to win the deal they need to submit their highest and best offer first.
• Avoid unnecessary contingencies, keep your offer clean. Corporate Owners would rather give credit at closing for unexpected repairs; list price is already adjusted for current condition.
• Communication with the Listing Agent is essential. Email is the preferred method of communication as the Listing Agent is so busy they do not have time to return phone calls and you could easily lose the deal by not communicating with the Listing Agent by email.
• Don't expect extensive negotiations. You may be able to negotiate once or twice but after that you will be turned down. Corporate Owners do not have the time to negotiate as they usually are presented with 50 - 150 deals every day and need to make immediate decisions. They don't have time for games.
• Corporate Owners want clean deals and will strictly enforce the closing date charging Extension Fees of $300 and a per diem of $150 until day of closing. Make sure your Buyer's lender is aware of the urgency of closing on time. Allow for potential delays to closing in your offer (common delays to closing - inspections, lender delays, title issues, code and permit issues).
• Closing time frames: 30 - 45 days for conventional financing, 15 - 30 days for cash transactions, 45 - 90 days for FHA transactions on average.
• Corporate Owners control the closing and demand to use their people to close but will pay for it. Read all addendums carefully (may recommend attorney review). Addendums are constructed for the protection of the Corporate Owner and any alterations will not be accepted.
• Mail away closings (when closing paperwork is mailed to the home buyer for signatures) are common.
Most home buyers come to find out that buying a Foreclosure in Venice can be a daunting process. It is essential you work with someone who knows how the process works to ensure a successful transaction. If you have any questions regarding Foreclosures in Venice please contact me, I am happy to help.
Contact Kari A. Battaglia, licensed Realtor® in Venice Florida at 941-270-1851 to list your home, answer questions or to help you in your search for homes for sale in Venice Florida. I currently serve customers in Venice Florida, Englewood Florida, Nokomis Florida, South Venice, Laurel, Osprey and North Port Florida communities. As a private landowner, I also have Tennessee properties available in the Chattanooga area. Call or email me to receive a list of Tennessee properties available for sale.
Contact me by email at Kari@KariBattaglia.com. Need information fast, call me direct at 941-270-1851. Copyright©2009. By Kari A. Battaglia. All Rights Reserved.
Kari A. Battaglia, GRI - Realtor®, Broker Associate - Coldwell Banker Residential Real Estate - 331 W Venice Ave., Venice, FL 34285 - 941-270-1851 direct - 941-484-9715 - office 800-969-1990 toll free - Kari@KariBattaglia.com
www.DiscoverVeniceRealEstate.com - Free home search, view my listings, find valuable community info, links.
Serving customers in Venice Florida, South Venice, Osprey, Nokomis Florida, Casey Key, Manasota Key, Englewood Florida, Rotonda West and North Port communities. Call me to list your home for sale, answer questions regarding steps you can take to AVOID FORECLOSURE or answer any general questions you may have about real estate.
Contact me by email at Kari@BuyAHomeInVENICE.com. Need information fast, call me direct at 941-270-1851. Copyright©2010. By Kari A. Battaglia PA. All Rights Reserved.
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Kari
Great post, the buyers need to work with a real estate professional.
Good luck and success.
Lou Ludwig
VERY thorough on the REO buying process :) I may add this link to one of my tutorials I have about REO!!