Buying An REO In The Chicagoland area - Tips For First Time Homebuyers

Buying a foreclosure offers definite benefits to first time homebuyers that want to get into the market. Below are a few key points to consider once you have decided that a bank-owned property is the right option for you.

•· Get Pre-Approved for a home loan - this way you know how much of a loan you can afford.

•· Understand that REO properties are sold in "as-is" condition so there are no guarantees as to the condition of the property.

•· Contact an experienced REO real estate agent that is saavy on the REO buying process (especially the competitive bidding process).

•· Identify the neighborhoods in which you are most interested in.

•· Once you have found a property of interest, make certain to have your real estate agent determine a fair market value of the property.

•· Find out how many offers are on the REO home.

•· If you decide to make an offer make certain you have a pre-approval letter in hand from your lender to submit with the offer.

•· Make sure your real estate agent request time to complete a professional home inspection on the property.

It's not uncommon for desirable REO homes to get a dozen offers. It's also not unusual for the bank to narrow the field of competing bids to two or three offers and require the remaining interested parties to submit their highest and final offer. Going into the negotiation with a "highest and final offer" mentality will enable you and your agent to beat out the competition.

This information is provided as a service to prospective buyers thinking of purchasing an REO in the Chicagoland area by Matthew C. Putnick, a Licensed Realtor in the State of Illinois, with Gibson & James Properties, Inc. Matthew Putnick operates http://www.210days.com/, a website dedicated to the buying and selling of distressed properties.

E. Matt@GibsonandJames.com / C. 847.910.5449 / F. 773.549.2057