Bank Owned Real Estate is often referred to as ‘REO’, or ‘real estate owned’ property. This is a pleasant way of saying the bank has ownership of the home. Banks are in the business of loaning money against assets. The last thing a lender wants to do is acquire an REO property through a foreclosure. If the lender has foreclosed on the home there has been a long period of non-payment by the previous owner. In recent years, it also means that the lender will have lost a tremendous amount of money due to falling prices. At this point a bank will cut its losses. The REO property must be sold. This is where savvy buyers capitalize.

Bank Owned Properties are offering some of the best Values for Buyers

• Properties are often selling for much less than half the previous sale
• Savvy buyers come here to take advantage of the unfortunate situation of Banks
• 2009 will historically be known as THE year 'intelligent' buyers took advantage of the tremendous opportunity in the local real estate market

Relationships matter I have business relationships with the agents that list these properties. I bring them buyers so that they can get their home sold and they can get paid. They like that! I can inform you of properties that are going to be listed before they are entered in the MLS. In some cases I will know what price it will be listed at. Does that sound important? It should. My buyers have significantly benefitted from the relationships I have with the REO listing agents.

A low BPO can make you dough A lot of these properties are priced AWESOME at time of listing. The listing agent will do a price evaluation on behalf of the bank. This is referred to as a BPO or broker priced opinion. A relatively low BPO will reflect a lower listing. The lower the listing the higher the likelihood the property sells quickly and leads to listing agent compensation. You with me? So, when someone tries to sell a $100 bill for 4 $20s, I suggest you get $80 out of your pocket – Quickly!

I want my buyers to get the best price possible. However, there are other buyers. We need to come up with an offer that is better than theirs but still a fantastic deal.

Price is important – The banks higher asset managers to help them decide at what price level to sell these properties. The asset manager has limited authority to sell a home if it is within a certain percentage of the listing price. The asset manager is only compensated when the property sells. Don’t you think we should make the asset manager’s job easy?

Inspections can save your ASSet – I’ll get you a skilled inspector. If there is something wrong with the property we didn’t know about at time of contract, I get you OUT of the contract or $$$ back at closing.

Hiring a good attorney is key An attorney can find things about the property that the bank’s attorney may have ‘forgot’ to mention. Hire a local real estate attorney I have a brilliant one.