What the Heck Is an REO?

When the bank first asked me to list a property they had taken back, I didn’t know what an REO property was. It seems that it stands for Real Estate Owned (by the bank.) A few years back we had no idea what these were in Central Iowa. We never saw them. Ever since the housing market began experiencing difficulties, foreclosures and REO properties have been springing up all over the country. Even here in Iowa!
These foreclosures by the banks have kept home prices low. If you’re in the market to buy a new home, you may have the opportunity to save by buying directly from the bank. Please be aware that although the bank wants to get rid of these properties, they are experts in making money. You’ll have to negotiate to get the kind of deal you have available to you. Don’t try to go at it alone, you’ll want an experienced real estate agent at your side to help you navigate these tricky waters.
Many people will wait for the market to embark on a more solid recovery. This is a safer bet, but those who get in earlier will benefit the most. Home prices can always fluctuate, and we Investment Properties Indianapolis don’t know what the economy at large will do. We have to weigh the benefits and decide where to place our investments. Real estate, for some people, will always be a winning choice.
Don’t fall in love with the idea of REO. The fact that so many of them are on the market means that prices are lower on average across the board. If you find a home on the market you really like, chances are it’s much more affordable than it would have been not long ago. A good deal is a good deal, and the important thing is to find a home in a good neighborhood that will grow in value over time. Getting hung up on one approach or one type of property is a common mistake for the American home hunter. Be flexible, and consider all of the possibilities.
Before you do anything with foreclosure properties, make sure you have your finances in order. You’ll need to be ready to put down a high percentage of the cost of the home and cover your closing Advantages Of Buying A New Home costs, even if you’re successful in negotiating a lower price with the bank. You’ll want to know exactly what you can afford before you and your realtor begin the negotiation process.

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