Frequently Asked Buyer Questions
1. Is foreclosure the same as REO (or bank-owned)?
2. Is there an advantage to buying a bank-owned property?
3. Are all REO properties in need of repair or rehabilitation?
4. How do I locate bank-owned properties?
5. What do you charge for your services?
6. What information should I obtain about a property before making an offer?
7. What do I need to get started?
8. What if I have a home to sell first?
9. What else should I know about purchasing a bank-owned home?
Q: Is foreclosure the same as REO (or bank-owned)?
A: REO properties have already gone through the foreclosure process and are now in the bank’s possession.
Q: Is there an advantage to buying a bank-owned property?
A: Usually the purchase price is lower because the bank wants to minimize their loss and sell as soon as possible.
Q: Are all REO properties in need of repair or rehabilitation?
A: Most, if not all of these properties are sold “as is”. That doesn’t necessarily mean they are in poor condition. These properties are listed “as is” because the bank has never occupied the home and is unable to provide disclosures. It is up to the buyers and their agent to arrange for inspections and conduct due diligence.
Q: How do I locate bank-owned properties?
A: The CENTURY 21 Alonzo and Associates REO Solutions Team will do the research for you. We will provide you with the best bank-owned listings that fit your requirements. Contact us and we can begin assisting you right now.
Q: What do you charge for your services?
A: You pay NOTHING for our buyer agent services. Our fees are paid by the seller at closing. It doesn’t cost you anything for us to find you a great home at a great price.
Q: What information should I obtain about a property before making an offer?
A: You want to find out about the listing market time, any price reductions, property tax figures, recent comparable sales data, any known defects, any upcoming special assessments, and any available information on other offers. The CENTURY 21 Alonzo and Associates REO Solutions Team will provide you with all of the above and more.
Q: What do I need to get started?
A: If plan to finance your purchase, you will need a mortgage pre-approval. If you intend to make a cash purchase, you will need proof of funds. Please be advised that banks will not even consider your offer unless it is accompanied by a pre-approval or proof of cash funding. You will also need to have sufficient earnest money on hand (usually at least $1,000, or in many cases, a percentage required by the bank). Upon acceptance of your offer, you will have to supply a certified check for the earnest money, which will be deposited and credited back to you at closing. The CENTURY 21 Alonzo and Associates REO Solutions Team can help you obtain a pre-approval if you need one and will walk you through the entire purchase process.
Q: What if I have a home to sell first?
A: Contact the CENTURY 21 REO Solutions Team to assist you in getting it sold. Banks will not accept an offer that is contingent on the sale of another home.
Q: What else should I know about purchasing a bank-owned home?
A: Acceptance of your offer may take longer because the home you are bidding on may be one of several hundred files on the desk of an overworked asset manager. Be prepared for a response time of up to a week or more. Once your offer is accepted, things often move quickly. Banks prefer a quick close (often 30 days for financed purchases and shorter turnaround for cash).You will also have to review and sign the bank’s addendums that outline any special requirements. These requirements may include, but are not limited to, the following: an acceptance of “as is where is” condition; acknowledgement that the seller will not pay for a survey or pest inspection; earnest money must be in certified funds; taxes will be prorated at 100%; and that a special warranty deed will be issued. You will have the opportunity to have your attorney review the contract.
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