Bank Owned properties in the Vail Valley are priced to sell. The reasoning is simple – banks want to be in the banking business, not the property management business. It is in a bank's interest to sell off real estate assets that come into its possession quickly and without complications.
If you are thinking of purchasing a bank owned home in Eagle County, you might have to compete with other buyers for the property. Here are three ways to improve your odds:
Work with an Experienced Agent – Banks, as you might expect, operate “by the book” at all times. The bank will have rules on how to present offers and your agent will be expected to follow them precisely. Purchasing a bank owned property will almost certainly involve paperwork and tasks beyond the “typical” real estate transaction. Working with an agent with REO* experience is a definite plus.
Present a strong offer – The “strength” of your offer is not linked solely to the asking price, but also to the likelihood of the deal to go through. Cash offers are considered stronger than deals involving a loan, simply because there’s no chance of a loan falling though when there isn’t one. The bank will probably favor a cash buyer all else being equal.
If you can’t offer cash, a pre-approval letter from your lender is highly recommended, and frequently required. Most banks will not allow a sale contingency – a contingency in a Real Estate contract that allows you to buy the property after your current home has been sold – so plan with your lender and listing agent if you need to sell before you can buy.
Expect Changes – If the bank agrees to sell you the property, the asset manager will prepare a new offer for you to sign. It will be based on your original offer, but deadlines may be pushed forward or contingencies eliminated. Be sure to review the revised terms promptly and carefully with your agent to decide whether or not they are agreeable. If this decision takes too long, the bank may withdraw the offer and move on to another buyer.
In Part Two of this article, we'll discuss to expect when you're under contract.
*REO = Real Estate Owned, as in properties owned by banks.