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I’m interested in buying a Repo (in the banks possession) but have never bought a house this way and was wondering what the best way to go about it is. The asking price for the house is $ 406,000 which is around market value, but the house is in disarray and would need all new carpet, new paint, and some drywall work and replacing of fixtures. I’m tempted to just put in a lowball offer but think it might be helpful if I knew what amount of money the bank is trying to recover, what repo fees they want to recover, and what the real estate agent who is selling the house expects to make as commission so I can make the lowest offer possible without getting blown off. Any suggestions on how to proceed?

3 Thoughts on How do I go about buying an REO Repo house?
  1. Reply
    Jewels J
    July 31, 2011 at 3:19 am

    OK. You can’t find out what the bank is trying to recover. They can’t tell you that. You just put in a bit and highest bidder wins. You need to talk to your real estate agent about his or her fees. Then you can actually figure that into the mortgage loan. If the asking price is market value, then that’s the minimum that you should bid. The only way you will find a house that doesn’t require any repairs is to have one built for you. So, a bit of carpet, some new fixtures and some paint really isn’t that big of a deal.

    I had to completely repair the entire garage, replace the roof and the carpen and most of the doors and tile in the kitchen. But hey, I got a huge house for less then $ 20,000 and after repairs and all, it was right ar $ 40,000.

  2. Reply
    Lfagent4homes
    July 31, 2011 at 3:58 am

    The bank is not going to give you information on recovery costs, and a real estate agent can’t tell you what their commission is because that wouldn’t be disclosing confidential information about what the bank is paying them. Banks at one time would sell properties at a lost just to get rid of them, but because of the increase in market activity in most states, banks look to get market value for the properties they sell. They use a timetable to determine when they will reduce the price( for example, in 30 days they take of x amount, in another 60 days they would take another x amount off. In most states it still doesn’t cost a buyer to use a Realtor. A Realtor can help you make an offer that want be insulting, but might be low enough for the bank to take or a least counter at a lower than asking price. Market value (what other homes have sold for in similar condition in a given area) is all that matters in real estate, not what you need to make it your home, and a Realtor can show you what similar properties in the area have sold for.

  3. Reply
    Kaz
    July 31, 2011 at 4:38 am

    You need to get pre-approved for the financing first. Go to http://www.americanhm.com/timothy.kaz ee and you can apply there. There are also alot of mortgage tools on that site that will help you.

    Make sure that you can get the money forst before you even begin talking to the agent. Buying power is a big key here!!!

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