In addition to potentially finding a great price, there are actually several benefits to buying an REO property. What’s an REO property? A home becomes real estate owned (REO) property after a home goes into foreclosure and does not sell at auction. Essentially, an REO property is owned by the bank. We’ve compiled the list of benefits below that may make buying an REO property a great choice for you.
When you buy bank-owned property, you only deal with the bank. Some home buyers may prefer to not deal with homeowners. REO properties often are vacant, so home buyers don’t have to deal with tenants reluctant to leave, troubled homeowners or former owners threatening legal action.
No outstanding taxes:
If the previous homeowners stopped paying property taxes, it shouldn’t be a problem. To entice buyers, the bank should waive any outstanding real estate property taxes due on the property. However, be on the safe side and do a title search.
Option for home inspection:
Unlike properties sold at foreclosure auctions, you can request to see and inspect bank-owned properties before you close on a deal. And you definitely should. REOs are typically distressed homes, and the former owners are not likely to have kept the place up to date or even move-in ready, so an inspection will let you know what you’re in for in terms of updates and repairs.
Probably the biggest reason that people first get interested in bank-owned properties is because of their below market value prices. But that doesn’t mean the bank is just giving them away.
Homes that require too much repair work can quickly become just as expensive as—or even more expensive than—move-in ready, homeowner-sold properties. Compare the bank’s asking price with other comparable homes in the area and be sure to get a thorough inspection.
Think an REO property might be a good choice for you? Contact Metrowest today. We specialize in these types of sales and would love to help you start the process.