How to Make an Offer on Bank Owned Property

A bank owned property can be a good deal to wise real estate buyers

Offers on bank-owned properties are placed each day by real estate investors, first-time home buyers, and those who are looking for bargains in the real estate market. However, these offers are not always taken seriously unless they are presented to to the banks in a professional manner. Property buyers who are not far off from the asking price of the bank, often have a much better chance of having their offer accepted because there are usually a large number of people who want to purchase this type of real estate.

Instructions

1. Make your offer official. It is not enough to verbally state to a real estate agent what you would like to offer for a bank owned property. Put the terms of your offer in contract form, so that the bank with whom you are dealing understands the exact terms involved. The offer you submit through your real estate agent should include proof of funds, and the exact price you desire to pay, so the bank will see you are a serious buyer.

2. Hire someone to assess the condition of the property. Since the bank that owns the property is often located in another part of America, they usually offer their properties in as-is condition. This means you agree to buy the home in its present condition. You need to hire someone who understands how to estimate the amount of repairs a piece of real estate will need. Once you receive a bid from several companies regarding the repair costs involved, you can add this figure to the amount of money you will have to spend on this property.

3. Present a reasonable offer. Remember that other buyers may also be submitting offers on the same property in which you are interested. If you want the bank to accept the price you are offering, do not offer a price that is far below what they are asking. This type of bid will often lose out to others who are often willing to pay closer to the figure which the bank wants to receive.

References

• Realestateabc.com: Buying Bank Owned Real Estate
• Trulia.com: Lookin' For an REO 8 Things to Expect When You Open the Front Door