What to Expect When Making an Offer on A Bank Owned Property
As an REO specialist, working with banks in representing their properties, I have a unique position in advising other real estate agents and buyers on the process of making an offer on a bank owned property. It does differ slightly than making an offer on an individually owned or short sale property, as most everything in the negotiations are handled electronically.
1. Work with your agent in preparing an offer on the property.
2. The bank will require that the buyer apply for financing with their bank, however you may obtain financing through the lender of your choice.
3. The offer will be electronically uploaded to the bank.
4. The bank will review the offer and may…
- Accept your offer as is
- Counter your offer
- Reject your offer
The bank will reply verbally through the listing agent if they request a counteroffer. They may counter regarding price, earnest money deposit or closing date. The buyer’s agent and buyer will be given a time-period (24-48 hours) to accept or re-counter the banks’ offer.
Once the terms are acceptable, the bank will prepare documentation to be signed by the buyer indicating the Purchase & Sales Agreement has met mutual acceptance.
In the case where more than one offer is submitted to the bank, each offer is submitted to the bank electronically. The bank will request that each buyer submit their “Highest and Best” offer. The bank will then review all offers and accept what they feel is the best offer.
Proceeding to Closing:
Inspection deadlines are outlined in the Purchase & Sales Agreement.
The bank will use the title and escrow company of their choice.
The bank sells their property in as-is condition.