Upcoming Foreclosures

What's the best way of buying a REO property?

I want to buy a bank-owned house in Miami so I've been looking in websites like realtor.com and ziprealty. I recently found a very attractive bank-owned property and since houses that go thru foreclosure sometimes are not in the best condition, I emailed a realtor asking for details. She is telling me that the house needs a lot of work, that has a weird layout, and that there are open permits; I called the county and the last statement is false (there are no open permits). Right now I'm confused: I don't know if she is being honest and telling me all she knows or if she is trying to convince me not to look at it because she is not getting a good commision. Are there agents that specialize in real estate owned (bank owned) properties?

Public Comments

1. The best way to proceed is to negotiate with the banks. The REO departments would be delighted to unload some of their burgeoning inventory, and they should be willing to pay a realtor's commission to get assistance in showing a place.
2. a; not all RE agents know everything, even me. b; emailing just starts the relationship, it does not seal it. c; I am guessing she is a listing agent and thus, is out of her league trying to help you. d; seek, in your city, a BUYER"S agent and ideally, an EXCLUSIVE buyer's agent. YOu want someone who will agree NOT to be a dual agent on any deal you want to make [a dual agent is one who hopes to be paid by both you and the seller.] you need the relationship in writing and then, you will get faster, better action. Also, ask the agent how many buyer's agency deals where dual agency was not involved, did she-he close?
3. You don't know if the county just does not know that there were structures changed or added without permit but the Realtor does. Ask the Realtor that you would like to see the property in person and check it out. For sure you will not know about any addtions done without permits but since the Realtor stated that that is the case she should be able to point them out to you, and regarding work in need to be done, you will see yourself. By the way normally bank owned properties are paying pretty much the same commission than normally listed homes. - Just Short Sales are paying less. In todays market almost every full time Realtor is a Bank Foreclosure specialist. Most of the bank foreclosures are listed in the MLS and we deal with them on a daily base. My advise would be, ask the Realtor to show the property to you and also to show you properties meeting similar criteria in the same area. Then you will see if you are getting a good deal in buying the foreclosure or if there are other, may be better deals close by.