Posts tagged ‘Hayward foreclosure properties’

Buying an REO Property in Union City: Where to Start?

I’ve received a few requests for info from potential buyers of REO properties in Union City and Hayward on how to get started.  In terms of where to start, luckily there are many websites which allow you to customize a property search and specify “REO properties”.  For example, on my other website, there’s a webpage titled “Find a Home“.  Once you’ve selected the county you’re interested in from the drop-down menu, do the following:

  • Select Union City and click “add”
  • Enter the price range of the Union City properties you’re interested in.
  • Next to “Special Conditions”, there’s a checkbox for “REO/Bank/HUD/Corp Owned”.  Check that.

Email updates:  Whenever a property becomes available that meets your criteria, you will get an automated email update providing you with a one-page summary on the property.  

Use Internet Maps to get an overview of the property:  Google Maps has a “Street View” button at the top right, which is imagery of an entire street taken by a car.  You can get a real feel for the neighborhood this way.  Zillow and Trulia provide previous sale price history on many properties.  Finally, if you are looking at this from an investment (renting) perspective, you should check out HousingMaps, which is a map showing the various rental listings from Craigslist in whatever area you choose.  

With regard to how to write offers for REO properties in Union City, after doing a bit of internet research, I came across a clear, comprehensive list from About.com, which provides a list of 8 REO tips to Buying Foreclosures.

In short, the article lists the 8 tips as:

1. Get the property financial records (the bank’s purchase price on the property and the mortgage balance on the home).

2. Review comparable sales, including pending sales.  As an agent, I can help you with this. 

3. Analyze the listing agent’s REO sales (specifically, the sale-price to list-price ratio).

4. Ask about the number of offers.

5. Submit a pre-approval letter from the same bank that owns the property.

6. Getting banks to agree to repairs is hard. Don’t ask for them before your offer is accepted.

7. Try to shorten the requested inspection period, an important factor in their acceptance of your offer. 

8. Offer to Split Fees. Some banks will not pay for transfer fees. Offering to split may improve the acceptance of your offer.

I think #2 is especially important and is something that an agent with REO experience can help with. The internet is a wonderful tool to search listings info and see sale price history. However, in the quickly moving REO world, the latest pricing data is especially important. Your agent should be able to reach across his/her network of real estate agents and quickly get the latest pricing info on pending sales whenever possible. This will generally increase the chance of a competitive offer and a favorable outcome for your bid.

Veena Grover, RE/Max Accord | http://www.VeenaGrover.com | 510.378.7546

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October 31, 2008 at 11:25 pm Leave a comment