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Riverside & Corona Real Estate
Buying an REO - Pedersen Real EstateReal Estate Owned (REO), also known as bank-owned properties can seem like an attractive purchase but you need to understand exactly what you're getting into before you buy them or you may regret the purchase. These types of properties are owned by lenders such as banks, credit unions, mortgage companies. The lender has acquired the homes through the foreclosure process. With the market and economy the way it is currently, banks are ending up with property they don't want. That has some buyers seeing a great opportunity to either get into the real estate market for the first time or to add to their real estate portfolio. Bank-owned properties can be a great starter home for first-time buyers because they generally will sell for a lower price than the traditional homes for sale. But, remember even though lenders or banks don't want the property; they are just like traditional sellers in that they also want the highest price that they can get for the home. Buying a house after the bank gets it through foreclosure can be easier than purchasing a pre-foreclosure home or buying it at a foreclosure auction. Buying REO properties from the lender/bank can be safer but also a bit tricky. There are risks involved in buying a bank-owned property and it is important important to use the right experts to assist with your purchase. Your real estate agent will protect your rights and try to get you the best deal possible and should check the comparables of the house to let you know if the foreclosed property is selling for a good price. The national average of comparable homes that are bank-owned as opposed to just typical resale, the bank-owned properties, depending on the market , are about 15 to as much as 30 percent lower in cost than typical resales. You should understand why these properties are lower. REOs are sold AS IS - meaning that you are buying the house as it is with no repairs or credits for repairs from the bank. It is so important that you have a professional home inspection done - you need to know what you are getting into and what will need to be repaired or replaced. It's . Have your home inspector check everything out. You will need to know the potential added costs of fixing things up, rehabbing the property. REO properties also vary from traditional home resale properties in the length of time it takes to buy one. You may get an answer from a traditional homeowner within 24 to 48 hours but banks generally take longer. Also, it is very competitive in buying REO's. There are lots of buyers vying for the best of REO properties. I've seen instances where listing agents receive 30 to 40 offers for certain properties. There will almost always be multiple offers for REO's. Before REO properties are sold, the banks will typically take care of the removal of tax liens and evict occupants if necessary. In general, most REOs are free of title-related issues but you still should have research and a title search done on the property. If you have the patience, the right attitude, and experts on your side, you may find an REO property is exactly the deal you've been waiting for. Read about tips for getting your offer accepted for REO properties. Click here to return to the main page. Pedersen Real Estate
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