Tampa Florida Bank Owned Properties
The first thing you should know about buying a Tampa Bay Area Bank Owned Property is that you have greater negotiating leverage if the property has been on the market for a while. When an REO first goes on the market, the bank may be unwilling to negotiate down on its asking price as it wants to get as much of what was owed on the original loan back as possible. However, once a home or condo has sat too long on the market with few bites, a bank becomes more willing to take what it can get since its primary goal is to get the asset off the books and increase shareholder value. Banks have no desire to be in the real estate business. So, here are some tips on how to negotiate with a bank when buying a bank owned property.
1. Make offers on Tampa Bay Area bank owned propertys only if they have been on the market for more than 30 days.
2. If the bank rejects your offer, wait another 30 days and resubmit it. Over time banks become more willing to negotiate with buyers and will be willing to take less.
3. Hire your own attorney to review the bank’s Purchase Contract. Since most banks use their own attorney to write the Purchase Contract, it will not favor the buyer so you need a good real estate attorney to review it.
4. You are not obligated to obtain your loan through the bank offering the property for sale. They may ask you to submit a loan application to pre-qualify you for the purchase, you can still seek a loan from another bank with a better rate or terms.
5. Make sure you have an approval letter from your lender before you submit an offer that assures you your loan will not run into unexpected delays because the selling bank may charge additional fees if the closing date is delayed.
6. Since most foreclosures are sold “As Is,” make sure your offer is contingent upon having a home inspection done. Some times sellers damage the property or strip assets from the home before they leave.
Please allow us to assist you in your search for that perfect property and represent your interests in the negotiation process.
Rick Frissell ~ Realtor Brandon’s Beautiful Homes™
813-340-6828
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