Buying an REO Property

While the number of bank owned properties on St. George Island is greatly reduced, there are still a few on the market (currently five active REOs).  If you’re planning to submit an offer, remember these tips.

  1. Banks price the properties according to appraisals and current valuations, so don’t expect a significant discount off list price, especially during the first thirty days on the market.
  2. Banks are aware of repair issues, negative features and the condition of the properties.
  3. Banks like clean contracts with few, if any, contingencies.  Cash sales are preferred.
  4. Be sure to submit your proof of funds with a cash offer, or your pre-approval letter with a financing contingency.
  5. On your contract, use the name(s) in which you wish to take title.  It’s difficult to make even a small name change after the paperwork is submitted.
  6. Inspection periods allowed by banks are typically 5 to 7 days.  Have your inspection team ready.
  7. Plan detailed inspections.  The property is sold in “as is” condition with no warranties.
  8. Be patient.  The seller is an institution, and is in control of this transaction.
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