While the real estate market is rebounding in nearly every major metro
area and foreclosures are declining as well, there is still an abundance of
foreclosed properties on the market. Real estate-owned or REO properties can
prove to be a great investment for home buyers and investors alike, however,
it’s important to be realistic about the REO buying process and any bumps you
may encounter along the way. Depending on what you’re looking for in a home or
investment property, an REO property may be ideal for your situation. Read on
for a few tips on purchasing an REO property and learn whether or not the
opportunity is a fit for you.
Step 1 – Secure
Financing Just like purchasing a traditional property,
rule number one to purchasing an REO property is the same: get pre-approved!
There’s nothing worse than falling in love with a property and not being able
to afford it, and that goes for REO properties too. If you don’t know what you
can afford, you’re setting yourself up for disappointment. In addition to
pre-approval, it’s also a smart idea to have enough budgeted for a down
payment, closing costs and potential renovation and repairs. Since many REO homes
are sold as-is, you’ll need to be prepared for additional costs after the sale. Step 2 – Be Prepared to Make an Offer If you see an REO home that you'd like
to buy, the sooner you can make the offer the better. Why the rush? It’s
possible you’ll be competing against investors and other interested parties who
are also able to move fast, often with cash offers. Step 3 –Due Diligence is Your Responsibility Since REO homes are sold as-is, it’s
really important to do your homework once you've signed the contract. This
starts with the home inspection. You’ve probably heard it’s always a good idea
to get an inspection when you're buying any home – it’s even more important
when you’re buying an REO. Since the property may have sat vacant for some
time, it’s crucial to have a reputable professional inspecting every nook and
cranny. This is also the right time to ensure the REO is free of any safety
hazards or other unknown issues. REO properties can
vary greatly. Some are in great condition and need minimal work, and then there
are some in need more extensive improvements. Still, depending on your budget,
timeline and overall goals for purchasing property, an REO may be just what
you’re looking for.
Author:Ken Blevins Phone: 720-255-7242 Dated: January 31st 2014 Views: 1,687 About Ken: Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and...
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Since 2003, Metrowest Real Estate Services has been Denver’s premiere resource for residential, foreclosure, REO and investment real estate. When helping you buy or sell, our mission is to provide excellent customer service to our corporate and individual clients by ensuring that our agents exceed all standards for market knowledge, professionalism, and client support. Whether you are a high volume investor or a first time homebuyer, our team at Metrowest can help you realize your real estate goals! Metrowest is your Denver Colorado Real Estate Team. We specialize in helping you get the most of your sale, purchase or investment.
Rental prices are consistently increasing all over the metro area, but
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