East Valley Real Estate Services, Az – United Brokers Group

Click to Search Bank Owned Homes

Bank owned homes, sometimes referred to as “REO” (real estate owned by the bank) are homes that were foreclosed on and did not sell at the foreclosure auction. The reason they did not sell may be that the bank did not receive the minimum bid they were expecting or there was just no bidder looking for that property type that day, the reasons vary. Consequently, these homes were retained by the bank and are now being sold by a REALTOR®.

REO homes are almost always sold “AS-IS.” The bank generally will not make repairs. Many need minor repairs and some need extensive repairs. Condition should always be an important consideration. An aggressively priced home is not always a bargain if the repairs are too costly.  A professional home inspection will help you determine what repairs, if any, are needed. That being said, bank owned homes can represent some of the best buys in the market.

When you buy a bank owned home, in most cases, you will have to sign a “Bank Addendum.” This Addendum represents the terms the bank is requiring in order for you to buy their REO property. It is imperative that you fully understand your Bank Addendum, as it often reduces the rights you have been afforded in the AAR Arizona Purchase Contract. These reduced rights may include, but are not limited to, a shortened inspection period, a non-refundable earnest deposit, the limiting of your Loan Contingency period, etc…

Because Bank Addendums are legal contracts outside the scope of a agent’s ordinary practice, buyers of bank owned homes are highly encouraged to have an competent real estate attorney review the Bank Addendum before they sign it.  A REALTOR® is not permitted to interpret this document for you.

Also, the buyer may be asked to do certain things that are not ordinary in a traditional purchase. For example, the buyer may be asked to have utilities turned on in their name in order to facilitate inspections.

For many of the reasons discussed here and others, it is important to have an experienced REO agent. Bank owned homes are a specialty area and you will want to work with a REALTOR® who understands this process.

At UNITED BROKERS GROUP (UBG) we have sold hundreds of REO properties, representing both buyers and sellers (banks).  UBG has highly qualified agents who specialize in REO transactions and who can help to make the process a smooth one.

For more information about our REO agents or to get more details on bank owned homes, please call us 480-539-4775.  You can always go to our FACEBOOK page as well.

Heidi Quigley
Designated Broker