As many home buyers in the Denver area will tell you, choices in the Mile High City appear few and far between, especially if you’re confined to a particular budget. The good news is there’s a way to expand your options if you consider distressed properties. Adding real estate owned (REO) properties to your search list can result in more options and also possibly find you a house that’s priced in a range you can afford. If you’re considering checking out REO properties you may be a little apprehensive, but if you check out the points below you’ll see that this process is fairly similar to buying a traditional listing.
- Before the bank puts a property on the market, it will make any major repairs to issues that make the house unlivable. The bank is now a motivated seller just like any other homeowner, so it will incur minimum expenses to make the property marketable.
- You may view the property before making an offer, just as you would with a private homeowner.
- It’s a good idea to get pre-qualified or pre-approved before shopping or making an offer so that you know the price range you can afford.
- Once a property becomes bank owned, the bank can sell it at a competitive market price, so it won’t necessarily be a bargain unless it’s been on the market for quite a while.
- Once an REO has been on the market for a while, the bank may continue reducing the price to attract buyers. Every day the home sits empty, it costs the bank money, so they are very motivated to sell these homes. Don’t be afraid to make a lower bid.
- REOs generally take longer to respond to an offer than a private homeowner, so be patient.
Of all the distressed property types out there, REOs are often some of the most attractive. They are very similar to traditional sales and can also be listed very competitively. If you think this option may be right for you, give Metrowest a shout. We specialize in REO sales and would love to work with you!