What to Expect When Buying REO Properties
REO properties, which translate to real estate-owned homes, are being hailed as the all-time-favorite of investors and entrepreneurs. If you have your eyes on any of these properties and want to finalize a deal with a profitable margin, there are a few areas that must be walked through prior to the final purchase.
What is a REO property?
A REO property is a bank owned property. The designation is given to properties that were not sold during a foreclosure sale, and thus are added to that foreclosing bank’s inventory. As a result, banks are always on the lookout for buyers in Albany, New York who are willing to take over these properties.
What to expect:
The lender can quote an unrealistic value for a REO property
At times, lenders and loan services fail to realize the true value of a property. They are focused on negotiating and the factors that influence its worth. This scenario occurs when you are dealing with properties categorized under the REO listing. Hence, there are chances your offer could be rejected. If your offer is rejected, then you must not give up on your plans for procuring a REO property only after one attempt of submitting an offer with your real estate agent.
The REO property can be an evicted one too
When a property is undergoing a legal battle, it would be utterly foolish on our part to expect its maintenance or renovation by either of the parties. Although banks sometimes try to get the properties fixed but, as absentee owners, they are not always successful. Therefore, before beginning the journey to purchase a REO property, hire a professional real estate agent in Albany, New York to assist you with scheduling a home inspection. The inspector would provide a detailed illustration of the present circumstances so that you do not end up paying more for the property’s renovation.
The bank’s response for your REO property offer
It is up to the bank to accept or reject your offer and their response can be very slow. Unfortunately, the communication process is not like a routine buying and selling situation with a homeowner where the seller immediately responds after the buyer comes up with an offer; in REO properties this process could be delayed. Regarding REO properties, you and your real estate agent can strategically formulate an offer and present it to the bank but, the bank’s response can take up to days before receiving a reply. Our real estate team will ensure that you will be informed of any details to reduce the frustration while waiting for the bank’s response to your offer.
Available REO Properties
Are you wondering how to find REO properties? Visit Lovely Capital Region Homes to preview bank owned homes for sale today. Our real estate team in Albany, New York can assist you with completing these key requirements. To help you reduce time and save money, we can provide you with a preliminary detailed illustration of the REO property’s present circumstances at no cost to you.
About Denise Sherman
Denise Sherman served in the Army as a Logistics Officer and now serves her community as a REALTOR® with Carrow Real Estate Services in Albany, New York. She combines her love for the industry with her passion for helping future homeowners and business owners achieve their real estate goals. Her team can help you make good real estate decisions.