Bank Owned Properties
August 25, 2009
A significant segment of the properties presently being offered for sale are owned by banks. These properties are often the source of extreme frustration for buyers as they often have offers as soon as they show up on the multiple listing service (MLS) - often not just one offer but many offers. Perhaps a look at how these properties are being processed by the banks will ease a bit of the frustration, not eliminate it, but ease it.
1. A bank is not attached to the properties that it takes title to through the foreclosure process. They have developed their systems for selling, that are basically unemotional and somewhat rigid.
2. An employee of the bank usually having the title of "asset manager" is assigned the property.
3. The asset manager has a contract with a real estate company/agent who does a "broker price opinion" (BPO) as to the fair market of the property.
4. Once the fair market value is established, the asset manager places the listing with the real estate agent who puts the property into the MLS.
5. Offers are presented through the listing agent to the asset manager. (Very often the asset manager will not look at any offers until the property has been on the MLS for at least 5 days.)
6. Usually in the form the bank has developed, the offer that is selected is "countered" with a reiteration of the terms and conditions for the banks acceptance; short escrow, short time for inspections, per diems if not closed on the date set, no repairs, etc.
Since both the real estate agent and the asset manager maybe handling a large number of properties, frustration arises when they are difficult to reach and when they are adamant that there is no flexibility once the contract has been agreed to. (They really do not need to be flexible as there seems to always be another buyer waiting in the wings.)
Buying a bank-owned property requires patience and the help of an agent who can assist with a BPO for the buyer to determine a fair price to offer that will be competitive in this very competitive market place.
A significant segment of the properties presently being offered for sale are owned by banks. These properties are often the source of extreme frustration for buyers as they often have offers as soon as they show up on the multiple listing service (MLS) - often not just one offer but many offers. Perhaps a look at how these properties are being processed by the banks will ease a bit of the frustration, not eliminate it, but ease it.
1. A bank is not attached to the properties that it takes title to through the foreclosure process. They have developed their systems for selling, that are basically unemotional and somewhat rigid.
2. An employee of the bank usually having the title of "asset manager" is assigned the property.
3. The asset manager has a contract with a real estate company/agent who does a "broker price opinion" (BPO) as to the fair market of the property.
4. Once the fair market value is established, the asset manager places the listing with the real estate agent who puts the property into the MLS.
5. Offers are presented through the listing agent to the asset manager. (Very often the asset manager will not look at any offers until the property has been on the MLS for at least 5 days.)
6. Usually in the form the bank has developed, the offer that is selected is "countered" with a reiteration of the terms and conditions for the banks acceptance; short escrow, short time for inspections, per diems if not closed on the date set, no repairs, etc.
Since both the real estate agent and the asset manager maybe handling a large number of properties, frustration arises when they are difficult to reach and when they are adamant that there is no flexibility once the contract has been agreed to. (They really do not need to be flexible as there seems to always be another buyer waiting in the wings.)
Buying a bank-owned property requires patience and the help of an agent who can assist with a BPO for the buyer to determine a fair price to offer that will be competitive in this very competitive market place.
posted by shirley harry at 8:26 AM
1 Comments:
Rent-to-own home is another good option in purchasing a house especially if your funds is not that sufficient for a downpayment and monthly mortgage. Just be open with the seller on some conditions on your contract so that both will have the advantage on the set-up.
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