REO Property Advantages
by Brian Scott

If a property reverts back to the bank, what is the advantage of buying one of these properties? Doesn?t this just mean that nobody wanted to pay the opening bid on the property because the house is over-valued. The short answer to this is yes, but the long answer is where you can make your profit. First off, all banks are in the business of money, not real estate, so when it comes to pricing houses to sell at foreclosure or at short sales they are behind the curve on what the current market value of the opening bid needs to be. As more and more properties revert back to the banks however they are slowly starting to catch on. After the banks get these properties back they realize that the reason why these properties didn?t sell is that they are A. overpriced for the current market, and B. Need work done to sell at market price.

This is where REO real estate expert agents step in and take over the selling process from the banks. They do a complete analysis of the market and property condition and then price the property accordingly. One of the main benefits of buying an REO property is the ability of gaining access to the house to see exactly how much money needs to be spent in order to fix it up. REO properties have all gone through the foreclosure process and are vacant, which means that you can do a detailed estimate of repair costs. The other advantage is that now that the property is on the open market, as an investor you are able to make an offer on the property and depending on the situation that the bank is in they might just be willing to accept it, not to mention the fact that you will be able to have a complete inspection done on the property as a condition of the purchase contract. You might not find a property with as much equity as you can by buying at a foreclosure auction, however when you find the right REO property your main benefit is knowing what you are getting yourself into.

October 8th, 2010

By Michael Mclaren   One way to buy a property or home is through a foreclosure auction, but there are a few things to careful of before you buy.

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September 23th, 2010

By Stefan Rockhaus  The ownership of the home is transferred to the lender when the person is unable to pay the dues and installments in time. This transfer of ownership to lender is called foreclosure. It can be an ideal investment.

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