Eileen, Home Buyer in 90805

is an REO house good to buy?

Asked by Eileen, 90805 Thu Mar 1, 2012

There is a lot of foreclosures, short sales, and REO's for sale in the area I would like to buy a home. I was told that a standared sale, and or REO is the best choice when it comes to buying a home. is that true? I have my eye on two houses and they both are REO's... they are really HIGH priced though. One has upgrades... but the neighborhhod isnt that good... they are asking $260k!!! if I place an offer on it, Can i ask for them to pay closing costs? and how much can I lower them?

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10
Nathan Wolf, Agent, Charlotte, NC
Thu Mar 1, 2012
FIRST: HIRE A BUYER AGENT REALTOR!!!

Buyer Agent REALTORs work for FREE to the Buyer. NO CHARGE TO THE BUYER.

Their fee is already included in the purchase price. And if you dont hire YOUR BUYER AGENT REALTOR, then The SELLER'S AGENT makes a DOUBLE Commission! So, hire your own Buyer Agent Realtor.

THEN, ask that BUYER AGENT REALTOR to give you advice on the houses you like. Because: YES, you can ask for Closing Costs. YES, you can make a lower offer. YES, you should have an agent that is helping you on this very HUGE money decision.
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1 vote
Kawain Payne, Agent, Seal Beach, CA
Sat Mar 3, 2012
Hello Eileengo,

REO and standard sales are by far easier to close than a short sale.

In both standard sales and REOs the buyer can ask the seller to pay some or all of the buyer's closing cost. Helping buyers with closing cost is up to the seller.

Be careful offering less than list price on an REO. The bank has usually had two or more BPOs done on the property in order to come up with their list price. BPO is a Broker's Price Opinion. It is very similar to an appraisal. This is done to determine a list price.

Think of the REO process like a silent auction, the buyers put forth their best and final offer and do not know what the other bids are. The list price is like an opening bid. Bidding below it may not put you in a good position.

As far as the price of the homes you are following being too high, email me:( Kawaindpayne@gmail.com)
the property address I will check the comps for the area and let you know if they in fact are priced above market value.

Best Regards,

Kawain Payne, Realtor
Prudential California Realty
714-293-1151
Kawaindpayne@gmail.com
0 votes
Robert Chome…, , San Diego, CA
Fri Mar 2, 2012
REO's can be good because you can close in 30 days vs. a short sale can be months and months. One thing with many REO's though is they are in disrepair and the seller does not have to disclose defects as they would in a normal sale.
0 votes
DJ Bonner, Agent, Long Beach, CA
Fri Mar 2, 2012
Hello Eileen,
I live and work in the area and I will be more then happy to work as your realtor. I will negotiate the deals for you and be there to answer any questions you may have. Please feel free to call or email me.
Regards,
DJ Bonner
Keller Williams Realty
562-572-4203
djbonner@kw.com
0 votes
Jeremy Lehman, Agent, Garden Grove, CA
Thu Mar 1, 2012
One additional note. You may not be aware, but the services of a buyer agent are free to you and paid by the seller whether you work with one or not. You might want to consider getting an agent to help you.
0 votes
Jeremy Lehman, Agent, Garden Grove, CA
Thu Mar 1, 2012
If you're looking for a great deal, then you should look at short sales too, since many buyers are avoiding them and they make up the majority of most entry-level inventory in all of our local areas. If you're in a hurry to move, then that's different. All homes have a different story when it comes to negotiating the price. Banks today are accustomed to paying closing costs for buyers, where many times standard sellers may not be as receptive.
0 votes
Shannon Jones, Agent, Seal Beach, CA
Thu Mar 1, 2012
Hello Elieen,
A standard sale or REO can certainly be faster than a short sale, which is probably why you've been advised to focus on those.

As far as prices -- before you make an offer on any house, you'd want to review comparable sales prepared by a knowledgeable, experienced Realtor who's familiar with the area. They can help you determine whether the listing price is indeed high based on location and condition.

With regards to closing costs, banks (and other sellers) will often agree to pay for a buyers' closing costs. Have you already spoken to a lender to determine how much credit you'll need and how much you qualify for? If not, I'd be happy to refer you to a great lender. I'd also be happy to chat with you about what you're looking for. We've helped lots of first-time home buyers. Feel free to contact me.
Web Reference:  http://www.ShowMeHome.com
0 votes
Susan Van Wig, Agent, Long Beach, CA
Thu Mar 1, 2012
Absolutely! The banks don't have any interest in hangin on to those properties and are ready to seel at a fair price. You need a realtor who knows the area to help you evaluate the prices in relation to recent sales. If you need help with closing costs we can ask in the contract for the seller to cover some or all of them. I would be glad to help you through the whole process. Please feel free to contact me.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Thu Mar 1, 2012
An REO is a home that a bank now owns because they foreclosed on it. They and regular homes are much easier and faster to sell than a short sale because they might never sell at all and could fall into the foreclosure process. REO's and regular homes will be looked at by real estate agents and a suggested market price will be suggested. Both can decide to offer the home for more than what the agent suggests and you are free to offer less too. The seller will then decide to counter, or accept or ignore in some cases. I suggest you find a good buyers agent to work with and let them help and guide you. Get your own agent, one not with the same company as the listing is with or you will be in a dual agent relationship which is not in your best interest. Going below list price on an REO or regular is possible and your agent can guide you based on the market in your area.
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Mar 1, 2012
There are good ones, and there are bad ones:
A Buyer's Agent is there to tell one from the other.
There are, as you are finding out, many variables to the process.

Good luck and may God bless
0 votes
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