September 11th, 2014 9:27 AM by Jackie A. Graves
If you’re looking to buy
a home, you’ll likely come across homes for sale referred to as "REO"
or "bank-owned." What are these properties and should you consider
looking at them?
Essentially, REO and
bank-owned properties are one and the same and are most prevalent in regions
hardest hit by the housing crisis, such as Arizona, California, Florida and
Nevada. These homes have been through the entire foreclosure process and are
now owned by the lender. This means that the seller is the bank or an
institution such as Freddie Mac vs. another homeowner.
You should absolutely
consider buying an REO property if it fits your key buying criteria, such as
location, size and price. However, it's important that you educate yourself
before diving in.
Four Important Tips about Buying REOs
your market. It's more
important than ever that your offer price is comparable with other homes in the
neighborhood. Most banks and institutions can and will negotiate. However, the
goal is to sell the home at or near current fair market value and multiple offers
are on the rise. Rely on your real estate agent for guidance.
appropriately. Most REO homes are
sold "as is," so you'll need to consider the costs for renovation
and/or repair and the time required to complete them. Most banks and
institutions make necessary repairs and properly maintain the home after the
foreclosure, but you may want to make some as well.
the home. Be sure to have
the home inspected. This is an important step for any real estate transaction,
but even more so for REO homes since they may have been vacant for a period of
ready. As with any real
estate transaction, if you are a serious buyer and approved for financing, you
need to be able to act quickly. If you see a home you'd like to buy, the sooner
you can make the offer the better. Many investors are interested in REO homes
and they are often able to move fast.
Freddie Mac's REO
properties are managed through HomeSteps®,
our real estate sales unit. HomeSteps offers a variety of desirable and
affordable homes throughout the country and is definitely worth a look.
To find a listing of REO
homes for sale in your desired neighborhood, visit HomeSteps.com today.
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