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:
- 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.
- 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.
- 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.
- 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!