In the first ten months of 2008, 1593 Bank Owned Homes have sold in Ventura County.  The average days on the market for these bank owned homes were 49 days.  Below is a break down of all homes, short sale homes, and bank owned homes sold in Ventura County from January 1st, 2008-November 1st 2008.

Source: Ventura County Regional Data Share.

As the data in the table above shows, the average number of days bank owned homes in Ventura County were on the market are considerably different than the rest of the homes for sale.

Ventura County home buyers are finding that purchasing a home from a lender is much less time consuming and less frustrating than purchasing a short sale home.  In Addition, bank owned homes (also referred to as REO) are usually listed below the market value of the property.

In Ventura County home buyers are expected to encounter bank owned homes with multiple offers.  The majority of bank owned homes in Ventura County have multiple offers in the first few days of being on the market.  Due to these multiple offers, most bank owned homes in Ventura County have sold for more than the lender had originally priced the property for sale.

How to Make an Offer on a Bank Owned Home?

You have found the perfect place you have always dreamed of calling home.  The home you wish to make an offer on is a bank owned home/REO home.  So now what?

Each lender/bank has their own set of criteria when it comes to selling their inventory.  However, most lenders/banks require the following:

• Pre-qualification: The majority of lenders require that the home buyer goes through one of their local loan officers for a pre-qualification process.  One reason is to make sure that the home buyer qualifies to purchase the property.  The lender also hopes that the home buyer uses them to get a loan.  Ventura County home buyers need to be aware that they do not have to use the lender forced upon them by the bank who is selling the property.
• Lenders might ask for the home buyer’s proof of assets, proof of employment, FICO score, and pre-qualification letter.

Once the bank has accepted the home buyer’s offer, they will ask the home buyer to sign an addendum to the California Purchase Agreement.  In the lender’s addendum the home buyer is asked to agree to the lender’s terms such as, but not limited to, “Sold as-is”, “No warranty” , and for the buyer to verify all information related to the property.

Since the lender has never occupied the property, no property disclosures are presented to the home buyer.   Ventura County home buyers are advised to conduct a home inspection from a reputable home inspector as soon as they enter escrow.

Throughout escrow it is very important that the home buyer’s Realtor stays on top of the transaction.  Many banks charge an additional daily fee if the escrow does not close on the date stated and agreed upon in the purchase agreement.

Remember, bank owned homes in Ventura County are like hot cakes.  If you are ready to purchase a home, especially an REO, the most important move you need to make is:

• Get pre-qualified by a lender.
• Communicate with your Realtor regarding what is important to you in a home.
• Know your maximum price range.

Some of the bank owned homes that I have seen in Ventura County have been neglected and are in desperate need of some love and care.  As you are previewing bank owned homes try to look beyond the bad paint job, dirty floors, and/or missing appliances.  However, as you prepare to make an offer make sure you have considered all of the costs of bringing the home up to your liking.

If you are interested in purchasing a bank owned home/REO in Ventura County or if you have any questions on bank owned homes/REO please don’t hesitate to call me, Mana Tulberg: (805) 443-8898.