How to Find an REO or Short Sale Realtors?
Home foreclosure sales are not the same as conventional real estate sales where buyers’ and sellers’ real estate agents negotiate on their behalf until they reach a deal. Buying a foreclosed home can be a good way to score a deal while hunting for real estate. A foreclosure is a house whose owners were unable to pay the mortgage or sell the property. As a result, the real estate lender assumed ownership and is now trying to sell it to recoup some of its costs. For this reason, this process requires a realtor that understands this process.
Here are the top six factors you need to consider when picking a realtor to help you buy a foreclosure home.
1. Familiarity with the Foreclosure Process
Assuming you had never bought a foreclosed home before, you’ll need someone who’ll hold your hand from the beginning to the end. Your realtor of choice should be well versed, not only with the foreclosure process but also with the areas where you want to buy the home.
Negotiating with individuals isn’t the same as negotiating with a bank. Dealing with banks requires some experience in handling bank processes. An experienced realtor will anticipate what the bank will need and make it available, thereby making the transaction successful and smoother.
Even if you had bought a foreclosed home before, you may not be able to walk this journey alone. You’ll benefit from the services of a seasoned realtor who understands the ins and outs of foreclosures.
2. Get Referrals
The easiest way to get a good realtor for foreclosure homes is to ask family members and friends for referrals, especially those who have successfully purchased homes through this process. Naturally, you’ll need a realtor you’re sure has handled buying foreclosed homes.
It is advisable to hire a realtor who’s a member of a recognized agency such as the National Association of Realtors. These are the realtors who are committed to a professional code of conduct. If you can’t get such a realtor, consider one with recognized certification showing they have some training relevant to the real estate industry.
Consider designations such as Senior Real Estate Specialist (SRES), Accredited Buyer’s Representative (ABR), or Certified Residential Specialist (CRS). Also, remember to pick a buyer agent, not a seller agent.
3. Get a Realtor with Your Interest at Heart
When buying a foreclosed home, remember the banks are selling these homes to recover their cash. They, therefore, set rules and insist on some conditions and contracts. For this reason, you need to pick realtor who puts your interest above everything else.
If the conditions or a particular home are tough, they should advise you to look for another home or help you get one. A good realtor should help you get a home sold below market value, the better.
Some realtors are only after the commissions they’d earn from a transaction, not caring about the interest of their clients. A good realtor will help you navigate the entire foreclosure process so you can avoid all pitfall and perils.
4. Research Potential Realtors
Today, it is possible to get all the information you need about realtors online. By researching online, you can avoid falling victim to unscrupulous realtors. Once you’ve shortlisted some realtors, visit their official website and social media platform to find out what’s going on. You’ll get many reviews from the clients they have served. Go through these reviews to find what their former clients say about them. Pick a realtor with many positive reviews.
5. Your Realtor Should Understand the Home Inspection Process
A home inspection is necessary to decide whether a home is livable. If not, the home inspection will disclose what repairs are necessary, and how much they would cost. Foreclosed homes may be in a bad state, and the repair costs might be unbearable.
Your realtor of choice should be able to carry out an independent home inspection and advise you accordingly. Buying a house in foreclosure is a risky affair because the bank may not know how the house looks or what happened to it. Banks are also interested in getting as much as possible from selling the home and may not disclose some defects in the home. So you have to depend fully on your realtor.
6. The Realtor Should Understand the Market
A good realtor should help you buy a foreclosure house below market value. This can only be possible if the realtor understands the real estate market. But it’s not only the home value that matters.
Another thing to consider is the cost of repairs as this will also eat into your budget. An experienced real estate agent will find all means to ensure you get the best deal even with no money down.
7. Interview Not Less Than Three Realtors
After researching online about your shortlisted realtors, pick not less than three of them for an interview. It is through an interview that you’ll gauge their experience and style. Ultimately, you want a realtor that understands your needs and can help you get a home that fits your budget.
See how professional and polished their proposals are. The more they find it difficult and struggle to express themselves to you, the more they’ll also find it hard to negotiate a good deal for you. You want a realtor who’s polished, savvy, and intelligent, not someone who depends on trial and error.
The effort involved in buying a home and the legal implications are substantial, so you don’t want to risk anything. The realtor should get everything done right the first time. It is only after the interviews that you can settle on the best realtor.
There you have it. Now you know how to pick a realtor to find foreclosure homes. Make sure you take all the tips above into consideration. The home market is quite competitive and difficult to navigate without the help of a seasoned realtor. You need someone with a proven track record – someone who’s honest, reliable, and experienced. Such a realtor will ensure you get the best home at an affordable cost.
