Why You Should Consider Buying a Bank Owned Home

If you’re considering distressed properties in your home search, chances are you’ve heard of several types including foreclosures, short sales, and bank-owned or real-estate owned (REO) homes. It’s possible to get a great deal on distressed properties, but REO properties, in particular, come with a unique set of benefits. Read on to see if this type of house is for you!

Bank-owned properties are homes that do not end up selling at auctions. Thus, the house becomes a foreclosed property and is sold at a discount rate with less competition and less risk.

Advantages of buying a bank owned property:

  1. No homeowners to deal with– Because an REO is owned by the bank, you will be dealing directly with the bank when you buy a bank-owned property. So, since the seller is the lender, you can easily negotiate with the bank on some of the closing costs.
  2. No outstanding taxes to pay -Usually, the bank will always waive any outstanding property taxes that the last homeowners stopped paying for in order to attract home buyers.
  3. Option to request a home inspection– Properties that are sold at foreclosure auctions do not have the choice of requesting a home inspection before closing a deal. With bank-owned properties, this is not the case. It is essential to ask for one before purchasing an REO since they usually need repairs and upgrades.
  4. Can be Sold at below-market prices– Bank-owned properties can be sold at discounted prices with great advantages, such as low down payments and low-interest rates. This doesn’t guarantee you’re going to get a great bargain, however. Depending on the work that needs to be done, you may end up paying as much as a traditional sale.

If you’re considering purchasing an REO property, the first thing you want to do is find a pro who’s experienced with these types of transactions. At Metrowest we specialize in distressed property sales – give us a shout today and let’s start the process!

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