Banks that own foreclosed properties are anxious to get them off their hands. After all, their business is lending, not property management. Banks work almost exclusively with real estate professionals to list and market the property for them.

If you are considering purchasing an “REO,” or Real Estate Owned property, your real estate agent can do some research for you and offer advice. They can perform a search of bank owned properties and do a price comparison with other properties on the market. Banks don’t usually have the properties priced much lower than they are willing to accept, but a property that has been on the market for 90 days or longer may be more open to a price negotiation.

There are also potential hidden costs associated with foreclosed properties.
Owners who vacate a foreclosed home may have left plenty behind in need of repair. Be sure to perform a thorough inspection - with electrical and gas systems operating - and ask your real estate representative to factor repair costs into your offer.

Call me for more information on REO properties in this area.