When in Washington, Seek Foreclosure Listings of Reo Properties

By: Bob Smith

Washington foreclosure listings which contain REO, (real estate owned)
properties are the least risky as well as being the simplest.

REO properties are bank owned properties. These properties are usually
empty of occupants, available for viewing, inspection and appraisal. Upon
receiving the appraisal, determine if the property truly is a bargain.
Research the market value of the property you are interested in, subtract
the asking price, is their a profit? This profit is usually referred to as equity.

Many times REO properties are anywhere from 10% - 50% below market
value. On paper, this works in your favor as an investor, however, you
need to view the property as well as have inspections done to determine if
the house requires additional work. If, on paper, it looks like a deal, but
you realize the property is uninhabitable or in need of expensive repairs,
the equity in the house is reduced by these costs. You may use the costs
to bring the property to code or standard to reduce your offer price to the
bank or lender. The bank, now being the owner, usually is willing and
legally capable of negotiating all these terms. Remember, the bank does
not want the property, they want the funds from the property.

Additional negotiating tools the buyer can use include closing costs,
interest rates, down payment requirements --- all negotiating factors used
when purchasing a property using traditional methods. Your written offer
is your word, and prior to offering a contract, it may behoove you to be
prequalified for the loan to purchase the house. Prequalification can be
obtained with the bank selling the property, or elsewhere. Prequalification
will greatly enhance your chances of obtaining the property as well as
forcing the transaction to move at a greater speed.

After finding your Washington Foreclosure listing, particularly if this is your
first real estate transaction, take your time, do your research. Be diligent
discovering all the information available regarding the property. Be
forthcoming and realistic with your offers, ridiculous offers will be rejected
and make you look as if you were acting in bad faith. Yet, do not be
intimidated by lenders, this is your money, make it work for you and
provide a healthy foundation for a fiscally sound financial future.

Foreclosures
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