If you’re in the market for a new home, you may be considering checking out REO properties. Reo stands for “real estate owned,” and refers to homes that have been foreclosed on by banks or other lenders. These homes are often available at a discount, making them an attractive option for buyers.
Of course, before you purchase an REO property, there are some things you need to know. Here’s what you should keep in mind when considering REO homes:
1. Be prepared to move quickly. Reo properties are typically sold as-is, which means that you’ll need to be prepared to make any necessary repairs or renovations yourself. In addition, because these homes are often in high demand, you’ll need to be prepared to move quickly once you find a property you’re interested in.
2. Be aware of the risks. Because REO properties are sold as-is, there is always the potential for hidden damage. That’s why it’s important to have a professional home inspector take a look at the property before you make an offer. This way, you’ll know exactly what you’re getting into and can budget accordingly.
3. Know your financing options. In many cases, traditional lenders won’t finance REO properties because of the inherent risks involved. That’s why it’s important to talk to a mortgage broker or another lending specialist before beginning your search. They can help you understand your financing options and find a loan that’s right for you.
4. Have realistic expectations. Reo properties are often discounted, but they’re not always a bargain. Be sure to do your research and compare prices of similar homes in the area before making an offer on an REO property.
By keeping these things in mind, you can be sure that you’re getting the best possible deal on your new home purchase. Happy hunting!
Already Purchased and Investors
If you are in the market to add an experienced company to your team, contact us today!