Boise, Meridian, Eagle Idaho area Bank Owned Property for Sale!

There are thousands of REO and Short Sale properties for sale in the Boise Idaho area today.  Great deals?  Maybe.  Maybe not.  Be very careful.

REO (Real Estate Owned) is the acronym basically for repossessed property.  It is true that it is possible to get some really good deals buying it.  But there are some myths that are rampant.  If you have read much of my material on www.BoiseRealtyStore.com and www.BoiseHomesandLandforSale.com, you might have noticed that much of what I write is not in agreement with a lot of the hype you read on other web sites.

Don't get me wrong,  We love buying and helping our buyer's buy great deals and often short sales and repossessed property are GREAT deals.  But we have also seen the same nightmares that everyone now has heard about people flipping houses, over leveraging, and just plan doing way too risky real estate deals over the past few years.  So here I go again.  If you are considering buying either at auctions or REO, bank owned property for sale or short sale property I hope you will read and consider all below and call us if you have more questions or need help.

In spite of what you are going to read below, if you want to buy bank owned property we want to help you and can help you do it right and be aware of some vital issues.  Many people go to seminars, read books and get information that frankly is hype.  Buying REO property is the latest fade.  You know what happened to millions of people who went to the flip the houses seminars.  Many of them are the ones whose property is now BANK OWNED, REO property.

1. There are a handful of agents and brokers who list most of the bank owned property.  It is very important for you to know that most if not all of these people are contracted with the lenders whose property they are selling.  They are working for the BANK.  NOT YOU.  They keep their jobs by working for the lenders best interest.  NOT YOURS!

2. While many bank owned properties and short sales are great deals, they sell at market value or close to it.  The reason they are selling for less than the previous owner paid for or borrowed on them is that they are not worth that much!  You can often buy other property that is NOT bank owned or short sale property for less than the previous owner owed.  Bank owned property or ANY property that is selling has to be sold for the market value today.  Market value is determined by what a buyer will pay and a seller will sell for.  When the bid and ask get close enough for the buyer or seller to take that last final adjustment in price it sells.  Bank owned or not.

3. Because of this, the first thing a great investor realizes is that just because they buy a property that is bank owned or REO, or short sale property they do not necessarily get the best deal.  98% of home owners (sellers) are NOT in trouble.  Now please:  If you have spent hundreds, or thousands of dollars on short sale seminars don't shut down and quit reading this.  I love short sales and REO's.  I love buying them.  We love listing short sales.  But the truth is the truth.  Many people pay MORE for these properties than other property that is not distressed, but the owners have to move.  There are many reasons why people have to sell who are not in trouble. They got a job somewhere else.  They are moving up to a bigger nicer house, or for hundreds of reasons.  But they own their home outright.  Or they made big down payments and paid down their loans.  So the have LOTS of real equity even if they sell for today's value.  True, they may have been able to sell for 30% more too years ago, but they HAVE TO SELL NOW because they HAVE TO GO.  They cannot do a short sale.  They are not going to be foreclosed on.  They just HAVE to SELL.  The only way they can sell is sell at MARKET VALUE! With one out of four homes being listed as short sales or REO property sellers have to lower their price to the same level to sell.  They have to price there home and accept an offer that is in line with; you guessed it; the same price and sometimes even less than bank owned and short sale property!  If your main criteria is buying a short sale or REO and you are not even looking at the other property you are going to MISS IT.  I have seen many people insist on buying REO, short sale or fixer upper property and pay MORE for it than they could buy a brand new home or home that was a much better buy just because the won't even look if it isn't an REO or Short Sale!  I have even seen people do that when they HAVE looked at because they are just hell bent on buying repossessed property!

By now most people have quit reading this.  It is getting to long.  But if you really want to learn how to buy REO property or short sale property right and end up with a great buy please keep reading. Or if you stop, call me at 208-870-2115 (Jon Gosche).

•  Don't pay a lot of money for online lists of REOs, pre-foreclosures, short sales, etc.  We can give you that information for FREE.  Almost all of it is on the MLS.  It is not on the public online MLS but we can set you up in the MLS system so you will get real time listings as soon as any Realtor® lists a property that fits your criteria.  It will have detailed information and the address and directions so you can drive by.

• We are experts in listing and buying short sale property.  Most of the property listed as short sales are listed by agents who have never done or rarely completed a short sale.  about 9 out of 10 short sales end up being foreclosed on and become REOs.  9 out of 10 that we list close.  We know how to do it.  We have had training by one of the top loan mitigation guys in the country.  He worked for years on the bank side.  Now he does them for sellers and teaches agents and brokers all over the country.

• We can set up multiple searches for you and sort them so you can get REO property, Short Sale Property, and just all property for sale.  Then you can compare and really see what the different property is for sale for.

• We can send you comparable sold property.  Both property that is Bank owned REO, and conventionally sold property so you can really know true market value.

• We can present the data to a seller if you make an offer to justify your offer and negotiate for you.

• There are other costs people don't consider.  That can amount to a lot of money.  We can prepare net sheets including closing costs.

• We can help you unlearn myths and junk information that are commonly taught by the "investment gurus."

One last thing I just want to bring up. All foreclosed property goes to auction.  If you do this you need cash and it is due on winning the bid.  Most property goes back to the bank.  This is very risky business.  The property is as is.  There may be liens, even IRS leans that go with the property so if you buy, you pay.  I know of one incidence that people bid and won and bought a house that the last people who lost it owed close to $700K.  They paid about $315K.  Thought they stole it.  What they did not know was that there was a $350,000 IRS lean not on the title search.  Guess what!  That goes with the property.

Be careful, but do start looking for REO property, short sales, and just plane great buys.  There are lots of them out there.  Call me.  Let's talk.  I would like to be your Broker and help you get the best buy of your lifetime!

Jon Gosche, Broker, GRI, investor.  208-870-2115.