Looking at buying a Bank-Owned house. What does this information mean?

Asked by Joshua, Bonita Springs, FL Wed Dec 29, 2010

Here is all the information about this house:

its Bank-Owned (REO)
Transfer Value: $1,000
Est. Market Value: $98,523
Est. Market Range: $92,119 - $111,330
Est. Cost to Restore: $1,494

What does this information mean? How much can I purchase this house for?

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Answers

8
Danielle Sha…, Agent, Cape Coral, FL
Wed Dec 29, 2010
Joshua,

The information above may or may not be accurate depending on where you received it from. The only certain price anyone can tell you it can be purchased for is the list price. Days on market, condition, asking price compared to solds etc will all factor into what you would even want to OFFER the seller, regardless of what they're asking.

I hate to be vague and if you have more specifics I'd be happy to do some research to provide you with more precise answers.

Have a great evening.

Danielle Sharp
Sharp Homes
Cell 248.207.4445
Office 239.541.5363
sharphomes@yahoo.com
Web Reference:  http://www.mysharphomes.com
1 vote
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Sat Jan 1, 2011
Joshua, it means you come accross data from RealtyTrac or one of the other REO data providers. It does not even mean that the house is on the market. Keep your credit card in your pocket and contact a local realtor if you want a bank owned house.
0 votes
Sandy Saddle…, Agent, Fort Myers, FL
Fri Dec 31, 2010
The question: How much can I purchase this house for? is a common question in any real estate deal.
An REO is similar to any other seller. There could be multiple offers. There could be no offers.
Best advice - Make an offer your comfortable with.
Search below on my website and find SW Florida Foreclosures and Short Sales.
0 votes
Luis E. Loza…, Agent, Weston, FL
Thu Dec 30, 2010
(REO) = real estate owned
0 votes
Sunny Fellman, Agent, Chatham, MA
Thu Dec 30, 2010
REO means Real Estate Owned. Market value is an estimate of what the home is worth based on comparable properties that have recently sold and are currently for sale. Market Range is also the range of where the home is valued based on comparables, both active and sold listings. Cost to Restore-the bank must be aware of a current problem and this would be the estimated cost to repair (but there may be other issues that the bank is not aware of).

Bank owned homes can be a great opportunity for buyers to get a good deal on a home. You should be able to look up in your local registry of deeds what the bank bought the home back for-which helps you to know what they hope to sell the house at or close to. Bank owned homes are usually sold AS IS so you may need to be prepared to do some possible repairs.

Best advice is to use a local agent to assist you in your search. She can help you to decide what a good price for this home is and help you to find other potential homes.

Good luck to you!

-Sunny Fellman, Realtor
Cape Cod, MA
sfellman@kinlingrover.com
0 votes
..., , Lexington, MA
Thu Dec 30, 2010
To answer the second part first, the price you pay for the home is between you and the seller. The bank may be owed more than market value or less, that would be one factor in what they're willing to accept. Ask your real estate agent to submit an offer to the owner's agent.

With respect to the first part of your question, transfer value is historic information about what was paid the last time the deed changed hands - it's hardly relevant to anyone as it lacks any further qualification, date nor does it bear any relationship to what the seller wishes to be paid for the property. The rest of the information seems a little straight forward. The estimated cost to restore is not the amount in default but rather a guess at some unstated level of repair costs. It is unclear as to what nature of repair(s) it refers to... if the home is not habitable then you may need a rehabilitation loan to make it livable should you be seeking financing for your purchase. If you're subscribing to a service that provides this information let them know of your questions - they should be able to assist you to make better use of whatever value they claim to be adding to your research.

Let me know if you have any financing questions!

Tom
Thomas.Stevens@Flagstar.com
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Dec 30, 2010
Where is your buyers agent to answer all these question. Unconfirmed where you obtained this data.

Information is very straight forward states repair cost is approx. $1494 whatever those repairs may or may not be.

REO - Real Estate Owned property

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Mark Washburn, Agent, Cape Coral, FL
Thu Dec 30, 2010
RealtyTrac publishes notices of foreclosure filings and actions against a property. These are in no way homes listed for sale to you. It is unfortunate that consumers spend money to access RealtyTrac when there are many free resources in the market to view foreclosed properties.

If you are looking for a good deal on a foreclosure in Bonita, here is a resource to look at bank-owned properties: http://www.greaterftmyers.com/bonita-springs-foreclosures.php

Good luck with your search!
0 votes
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