Things to be aware of when buying REOs

- First-time buyers will need to be pre-approved by one or more lenders.

- Don’t be surprised if the bank that owns the home requires that you finance your purchase with them.

- Expect competition. Many buyers bid on multiple properties.

- Banks won’t accept offers that are contingent on selling your home.

- The best deals generally are those homes with the longest time on the market.

- Bank-owned homes typically sell for 10 to 20 percent less than their listing price.

- Be sure to pay for an inspection and consider the cost of repairs or damaged or missing appliances when bidding on a foreclosure.

- The bank is likely to make a counter-offer. Be sure to consider this when submitting your first offer.

- Some banks will not accept an offer unless it is submitted by a REALTOR®.

- Banks generally are looking to close quickly, within two weeks to 45 days.

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