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HOW TO BUY A BANK REPO – What You Need to Know
1. Serious Buyers: Banks will only review offers from buyers who have been pre-qualified by a lender and include a written pre-approval letter from the lender with the offer. The stronger the pre-approval, the more negotiating power you have.
2. Reputable Lender: Many banks will require that you work with a well known reputable lender…ask your agent from some recommendations.
3. Experience Makes All The Difference: Choose an agent that has experience negotiating with banks…not all agents are alike.
4. Below Market Value: Remember, Bank Repos are already priced well below market value, so it’s okay to offer more than the asking price to secure the property. In most cases, it’s still a great bargain!
5. Multiple Buyers: Understand Bank Repo’s can have multiple buyers bidding on the property. All offers are reviewed by the Bank’s Asset manager and Loss Mitigation Departments which can delay the Bank’s response to your offer. However, immediate response to any bank counteroffer is of the highest priority. Failure to do so can result in loss of the property.
6. Bigger is Better: To insure another buyer does not get your home, consider offering a large deposit…the bigger the better. Banks have been known to choose an offer based on the size of the deposit.
7. Keep it Simple: Banks love clean and simple offers, so eliminate contingencies and buy “as-is” if possible. The fewer requests, the more likely they will be to accept your offer over the other 15 or 20 bidders.
8. Numbers Game: You may want to submit offers on more than one property at a time to increase your chances of securing a property. Decide in advance what is the most you are willing to offer on each property. If you don’t really want the property don’t make an offer.
9. Top Priority Client: Create a Win-Win relationship with your agent by insisting on a Buyer-Broker Agreement for at least 30 days to insure you have their full attention as a Top Priority Client.
10. Buyers Market: Remember, it’s a great time to be a Buyer. You may have to jump through a few hoops to get a property, but it’s worth it to save Big Bucks!
For additional questions or comments:
951-231-8949
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