Bank repo homes can sometimes be bought for pennies on the dollar. Banks repossess or foreclose on homes when the buyer defaults on the loan. At Repo Finder, we help find the homes that have been repossessed. A person defaults on the loan when they fail to make their payments as promised.
Banks become the owners through foreclosure. These homes are referred to as REOs (real estate owned). A bank does not want to hold an REO for very long. They will sometimes hold a foreclosure sale to sell the home for what is owed on it. If this does not result in a sell, they will sometimes price the house for a lot less to get it off their books. This all depends on how their accounting department handles things.
Repo Finders can help you find these REO bank repo homes for you to be able to see which ones are available. Listing agents mostly list REO properties. They also sometimes work closely with the bank. The bank’s asset manager sometimes gets a cut from the sale if the listing agent gives them a discount. They usually list and sell properties in bulk.
Some listing agents will also serve as a buyers agent. This way they get the commission from both jobs. Some of the banks will pay the listing agent less but offer the buyers agent more of a commission. It can get a little confusing, but the listing agent works for the seller while the buyer’s agent works for the buyer of the property. Listing agents can work with a volume of properties because of the nature of their business. These are repossessed homes, so they do not deal with an individual seller but with a bank. Also, they deal very little with the buyer. This means the time spent on each piece of property is minimal. An REO listing agent can get so busy that they need the help of an assistant.
The buyer's agent works for the buyer. They have a fiduciary responsibility to protect the buyer's interest. Since they do not work for the seller, this is easier. The seller has to pay their commission. They also know how to negotiate the price with the buyer. If the home has been available for sale for more than thirty days, it is much easier to get them to accept a lower price.
Banks deal with these properties on a regular basis. This is why they can get discounts on escrow and title companies. Some of the banks are moving away from the closing costs and pushing more fees to the buyer. They will generally not want to draw up an agreement until all the terms are discussed and agreed on. Banks are sometimes challenging to deal with and have a set price that is not negotiable. Other times they will work with the agent as much as possible. Either way, the buyer's agent knows how to secure a deal for the bank repo homes.