Dear Buyer To Be,

The latest news from the real estate front indicates a host of shoppers converging on newly listed homes, mostly bank-owned or "REO", making multiple, sometimes above-asking-price offers.

A Sacramento Bee story on foreclosure properties offers the following tips for consumers considering a bank REO:

• First-time buyers will need to be pre-approved by one or more lenders, often by the lender who owns the property you desire. 
• Don't be surprised if the bank that owns the home requests that you finance your purchase with them.  [Illegal to require you to use them...]
• Expect competition.  Many buyers bid on multiple properties.
• Banks won't accept offers that are contingent on selling your home.
• The best deals generally are those homes with the longest time on the market.
• Bank-owned homes can sell for 10 to 20 percent less than their listing price.
• Be sure to pay for an inspection and consider the cost of repairs or damaged or missing appliances when making an offer on a foreclosure.  Banks will not renegotiate later, so build these costs into your offer up front.
• The bank is likely to make a counter-offer to tighten up details.  Be sure to consider the timing of this when submitting your first offer.
• Some banks will not accept an offer unless it is submitted by a REALTOR® on a specific contract or purchase agreement utilizing their pre-chosen title or escrow company.  Call me and I can tell you the best way to get your offer accepted when your up against a lender owned property. 
• Banks generally are looking to close quickly.  30 to 45 days is a typical amount of time necessary to close the deal and get your keys.

I know the process can sometimes be overwhelming. As your agent, my responsibility is to provide you the information you need to know you're making the best decision for the result that best satisfies your needs.

Please call me to discuss. I have additional resources concerning REO's and short sale properties that will certainly help clarify a very muddy process.

Good luck as we continue forward with the process,

David Thomas, Realtor® - Quality Service Certified Top 300
"Best of the Best" agent in 2006
Century 21 Bundesen
(707) 769-7188 direct
(707) 762-1032 fax
E-mail: SellThatHouse@Century21.com
Website: www.SellThatHouse.net

My business comes from your referrals of family and friends. My goal is that every communication, question, problem, and transaction be treated so fantastic that you seek me out to entrust me with those referrals. Thank you in advance!