If you are looking to buy a home without maxing out your budget, REO properties are worth considering. Essentially, Real Estate Owned (REO) properties are owned by a lender, typically a bank, that were unable to sell at a foreclosure auction. After this, the lender is able to list it for sale. Oftentimes, REO homes are priced lower than standard homes. This is because the bank does not want to sit on a property that is not making them money. With that said, here is your guide to the buying process for REO Properties.
Work With A Real Estate Team Who Have REO Experience
First off, hiring a real estate team who knows the ins and outs of REO properties is crucial. REO properties work differently than standard sales, and it is important to have experts handling them. REO homes are sold “as is.” This means that while the selling price may be low, repairs may be necessary. Hiring the right team will give you insight as to what to expect, as well as making the best offers at the best prices.
Next, a home inspection is recommended to determine what repairs are needed to make the home livable. However, an inspection does not mean the bank will make those repairs. On the other hand, you may find out that the property is not worth your time and money in the long run. A home inspection prepares you for the future, and can save a lot of headaches.
This is another area where having a real estate team with REO experience is crucial. The low prices of REO homes may entice a lot of potential buyers. Competition for the home can spark quickly, and knowing how to make a wise offer is important. Their affordability is the appeal, but going in too low can backfire if you are not careful.
Review The Title Policy
You will be required to get the lender’s title policy, but the title policy is a different matter. Buying the title policy offers extra valuable protection. For instance, the previous owners may have liens or preexisting claims. The title policy will help if these issues arise.
At the end of the day, there are pros and cons to REO homes. The lower prices can be enticing, but preparing for necessary repairs is a must. Moreover, hiring a team of experts will help you make your best, most effective bids.
Trusted Experience And Outstanding Service
Buying or selling a home is usually the biggest financial transaction of your life. Venture Title Agency is here to help you get it right the first time. Our team provides efficient, professional, and reliable title and escrow services to put your mind at ease. Contact us today to learn more!