Relocation listings provide smart buyers with excellent investment opportunities. Relocation listings are offered for sale because the current homeowner needs to move for their job. The property information package will include a “relocation addenda” that you need to carefully review before you make a bid on the property. Relocation properties are considered a hot investment because the seller is motivated to move, which means potential home buyers can buy the home for a lower cost, and the buying process can be sped up. In many cases, these properties will already have appraisals and inspection services completed before they are listed, to help speed up the selling process.
Types of Relocation Listings
There are three main types of relocation listings:
- Direct Sale – This is similar to standard home sales with the only exception being financial relocation benefits or sales support provided to the seller.
- Inventory Property – This property has been purchased by a relocation company to help an employee move. Inventory properties are well-maintained and priced to sell quickly. The new seller is focused on unloading the property as quickly as possible for an acceptable bottom line.
- Marketing Assistance – This is the most commonly known relocation listing. The transferring sellers have the support of industry specialists who offer referrals to relocation realtors with aggressive marketing tactics.
Purchasing Relocation Listings
When you find your perfect home and you would like to make an offer, it is important to know the right procedures in buying a relocation property. There are slightly different rules regarding relocations as the offer normally goes to relocation companies instead of “sellers” to negotiate the final offer. To expedite acceptance of your offer, submit a pre-approval letter from your mortgage lender to the relocation company. Relocation properties do require extra paperwork from other properties, which is why you need a good title company on your side to help ensure everything is filled out correctly.
Real estate owned (REO) properties are offered by banks and other lenders. If homeowners do not pay their mortgage, the bank will lose money. The bank will choose to foreclose on a home with unpaid mortgages, and then they will sell the home at foreclosure auctions. If a home doesn’t sell at auction, it becomes a real estate owned (REO) property.
When a property becomes an REO, it will be prepared for sale by the lender. All liens need to be cleared on the property before the price is determined. Lenders rarely offer upgrades or do any work on a home as they prefer to sell the home “as is.” The lender and brokers will list the property based on market fluctuations and recent comparable sales. Some lenders will provide a list of REO properties and will work with potential homebuyers directly where others prefer to use real estate agents.
Buying an REO Property
Unlike a standard property, REO properties are complex. Potential buyers need to include a letter stating you are willing to buy the property “as is.” To increase your chances of obtaining the property, the offer needs to be close to the asking price. If you offer a lower amount, it is important to state why you are offering the lower rate based on market research and investment considerations.
It is important to work with a qualified title company in Davis County to help you with your REO property. Contact Security Title of Davis County today to discuss REO properties and what you need to know before you buy!
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