| Hi, So you are looking for a fabulous deal. Below is | | | | like, act on it quickly. |
| some information to help you in your quest for a | | | | - Many of the homes below $120K have been |
| perfect REO/Foreclosure/bank owned home. Here | | | | vandalized or stripped by the owner. In some areas, it |
| are the numbers on REOs. | | | | can be as many as 50% of the homes. |
| - In September 2008, there were 8,078 REO on the | | | | - It is also typical for them to be missing AC units. It |
| market. | | | | might have the outer shell but make sure the unit is |
| - This accounted for about 15% of the total amount of | | | | actually there. |
| homes on the market. | | | | - Other items that most homes will need are paint, |
| - However, 2,388 worth of REO homes sold for that | | | | carpet, and appliances. For the ones in bad shape, the |
| month. They comprised about 40% of the solds eg | | | | list can be pretty long. |
| REO are the homes selling and driving the market. | | | | - Many times, these listing only contain one picture and |
| Price Points: | | | | the REALTORS do not mention the amount of work |
| - The entry homes are the ones that are moving. This | | | | needed. Therefore, call in advance and ask if it is still |
| is where you will find the most REOs and the most | | | | available and the shape of the home. Otherwise you |
| competition. | | | | will be driving around town without much to show for it. |
| - If you have the cash or credit scores, homes above | | | | Failing To Use Home Inspection Company |
| $450K are real bargains. Buyers are being required to | | | | - Buying your home often times the most important |
| put down 20%. | | | | investment and financial transaction that you will ever |
| - In a recent example, a home was purchased in north | | | | make. |
| Scottsdale last August 2007 for $1.3 M. It recently had | | | | - A home inspection can save you hundreds or even |
| to be lowered to $700K for it to get offers. | | | | thousands of dollars and unexpected problems down |
| Depending on the price of the REO, there are several | | | | the road. |
| items happening: | | | | - In addition to the inspection, it is often a good idea to |
| - The good homes below $200K are getting 5 plus | | | | request some type of Home Warranty to cover the |
| offers and sell quickly. So if you see something you | | | | electrical appliances that come with the home. |