Check out Bank Owned Homes in NW Portland. I found one today in one of my favorite neighborhoods. Priced at $344,900 and boasting a lot over .80 of an acre. I would love to have that big of a yard. Some of the surrounding neighborhoods include: Forest Heights, Sylvan Heights, West Haven and Caitlin Crest. All great areas! When searching for your new home check out Bank Owned Homes and Foreclosures first. Then look at the homes on the market for Fair Market Value (FMV).

AUCTION ALERT - List of Bank Owned Homes in Portland

CLICK the image to the left to sign up for AUCTION ALERT. You can receive instant notification of all Portland Foreclosures, Bank Owned Homes, and Short Sales. Bank Owned Homes are a little different then Foreclosures because the bank has usually taken back the home and has full possession. Bank Owned Homes can usually close in about 30 days too.

Eight Tips for Buying Bank Owned Homes

Savvy home buyers want to find a deal and buy a Bank Owned Home (REO) which are often times under priced. When banks sell homes under Fair Market Value, often times they will get multiple offers thus producing some tough competition. The banks will reject most these offers and either accept or counter offer the highest offer. If we are real lucky, then bank will just accept the highest offer upon receipt.

1. Get the history - You can often see what the bank put as the sale price on the Trustee’s Deed. Your agent should be able to see this on the tax record. Somewhere in between this amount and the original sale price of what the previous home owner bought it for is what the lender will generally accept.
2. Run Comps – Ask your agent to run comps on the home. We call it a “Comparative Market Analysis” here in Oregon. Also known as a CMA. I would also ask a title company for some comps too. Two opinions are always wise.
3. Competition – Are there other offers? This will make it tougher to come in lower. I would say that if there are more than two offers then you would have to come in above the asking price.
4. Be Pre Approved – Get pre approved from a lender of your choice. If you don’t know one, then ask your family, friends, or Realtor. Submit this with the offer.
5. Don’t ask for repairs yet – Often times banks will do repairs if you ask, but wait for the inspection period. You have time for this later. Don’t clutter up the offer with this.
6. Shorten the Inspection Period – Get an inspection the next day if you can. The faster you can do the inspection and move on the more you will be deemed the most serious buyer.
7. Pay for your own closing costs – If you have used a title company before often times they will give you a discount the next time around. The less you ask from the bank the more it might pay off in equity.
8. Ask to see the Bank Appraisal – The banks usually have an appraisal from the foreclosure / auction period. This would allow you to see what the bank sees when determining value on a property.

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My Thoughts

I feel that buying a bank owned home can be a great investment. Interview Realtors and hire an experienced Agent with 40+ closed deals. Those are my thoughts any ways. Good luck in your home search and feel free to email me with any questions you may have.

Cheers,

Aaron

About the Author | Aaron Majors

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Born and raised in Alaska, Aaron came to Portland after serving in the U.S. Marine Corps. Aaron enjoys the outdoors, volunteering, teaching, learning, and being active in the community. Always loving architecture and buildings, it seemed natural that Aaron's passion became Real Estate. He is a member of the Portland Metropolitan Association of Realtors, National Association of Realtors and is always continuing his Real Estate education. He sells Real Estate in the Portland metro area and specializes in selling Homes and has an extensive background in foreclosures, Home Auctions, Short Sales, Bank Owned homes, and investments.