How to buy bank owned homes Houston?
Are you in the market for bank owned homes Houston? It would be a good decision to buy foreclosed properties because it is a little different from a typical real estate sale. One of the major differences in buying a foreclosed or bank owned property is that there will be only one real estate agent to deal with. The downside with such deals is that there wont be little room for negotiation. Usually foreclosed homes come as-is, meaning it will be sold to you in the same condition the seller left it. After all, the home was foreclosed because the seller couldn’t afford to make the mortgage payments, so you cannot expect it to be maintained well or upgraded.
Keeping that in mind, here are some helpful tips for buying bank owned homes
As foreclosed homes are bought for less than the market value, there is always a huge demand for it. But it is important to research the neighborhoods and visit open house shows before deciding on a home. And even before that, there is something else you must do:
Getting a real estate broker
Hire a broker who specializes in foreclosed homes to ensure there is complete smoothness in the whole process. In certain cases, it is the banks that hire the broker for selling the REO property in the market and the buyer will work with the broker directly.
Home inspection
Your offer should be subject to home inspection because it is not advisable to buy any home without inspecting it thoroughly. It would help you unveil the flaws and know exactly what you are getting into. Finally, you can decide whether it is worth putting your money into.
Get a pre-approval letter
It is important to get a pre-approval lender from your lender. The letter would contain details of how much money you can pay for the house, your credit score and income. It is also important to work out the finances real quick because there are other people looking out for these properties, and you have only very little time before somebody else cinches it.
Checking on other comparable prices
In order to place your offer correctly, you must be able to price it right. Browse through similar homes in the neighborhood and check the sales prices. Sometimes, the bank deliberately prices the homes lower to attract more buyers, and sometimes they price it high to attract really interested buyers.
No repair discounts
As the house is sold as-is, don’t expect any repair discounts. Whatever upgrades and renovations, you have to do at the property, will be taken out of your pocket, you cannot expect to discount the price based on that.
Conclusion
After you offer for a foreclosed home in Houston, you might have to wait until the bank sits on offer. The bank can even ask you to submit a loan application. That doesn’t mean you have to get your loan from them. Make sure you have the pre approval letter from your lender before you submit your offer. The bank can charge penalty if you don’t have at that time.