on Tuesday morning 7/10/07. The Seller, his real estate agent and closer from his Title company were there. I came as the real estate agent representing the Buyers, who were accompanied by the closer from their Title company. After reviewing and signing off on 30 to 40 minutes worth of paper work by both parties, the ritual of handing over the keys to the premises and garage door opener symbolically sealed the deal!

I never get over the excitement of helping someone finding their dream home by helping them work through the entire process. The Purchase Agreement was delivered on 6/5, followed by a counter offer to the price. The Buyers agreed to the price and asked the Seller to include the dining room table, chairs and two bar stools. Both parties agreed and signed, finalizing the new agreement on 6/8. The inspection took place on 6/13. Three issues came up that were negotiated; Two items were fixed by professionals and the other was taken care of by a $150 escrow fund paid by the Seller, which is set up by the Title company in order for the Buyer to make the purchase for the new item and receive a reimbursement. 

The Buyers plan on doing some painting and other decorating before they move in to their new, home sweet home.

Dave Heinrich

612-715-3300

1. With REOs, committees typically make the decisions rather than a person.
2. Turn around time for an REO can take 1 to 6 weeks to receive a response to an offer as compared to 1 to 4 days for an individually owned property.
3. A Special or Limited Warrant Deed is conveyed for an REO, rather than the standard General Warrant Deed.
4. Corporations will usually only accept their own Purchase Agreements written in favor of the entity rather than using a standard approved Purchase Agreement.
5. REO properties are usually sold “as is” meaning they will not fix or repair anything. Private home owners know that negotiation may be necessary to sell their properties.
6. A minimum of 1% to 2% nonrefundable* earnest money is usually asked for and must accompany the offer on any REO property. (*Nonrefundable only if the offer is accepted)

When making an offer on REO’s, make sure you have accounted for the cost of everything that will need repairs, updating and other work. You may want to hire a professional to advise you in this area, since spending a few hundred dollars now can save you thousands in the long run. With some focused effort on making sure the numbers work out well, it could mean arriving at an awesome deal!

Both REO’s and a regular purchase, verification of funds will be needed on cash offers, or an approval letter from a lender stating that you can afford the property.

Dave Heinrich

612-715-3300