Real estate owned (REO) agents, sometimes known as bank-owned properties, and agents who specialize in short sales are not always sought after by buyers, but they need to be. These kinds of deals appeal to informed buyers who are searching for a good offer. REOs and short-sale listings frequently give buyers the chance to purchase a home for less than its market value. But keep in mind that not all REO or short-sale listings are offered at below-market prices. They are similar to other listing types in certain respects. A Goldilocks variety of REOs and short sales will be available to buyers: some are priced too high, some too low, and some are priced just right. Consequently, it is necessary to be aware of the real estate assets' fair market valuations. You'll also be able to purchase these homes when the right opportunity does present itself if you have enough liquid cash on hand.
Relevant Lessons
Short sale agents and real estate owned (REO) agents are other names for foreclosure agents. Find a REO by searching online, speaking with agents at open homes, and getting recommendations from friends and family. Using a REO to assist you in your search for a home has certain advantages. Depending on how long it has been in their possession, the bank that owns the property may compromise.Finding a Buyer's Agent for REO / Short Sales
Bank-owned properties and short sales make up the majority of sales in real estate markets that are slow or declining, according to several buyer's agents. If you can locate a buyer's agent who is in high demand, they will probably represent many REO and short sale buyers. To find a buyer's agent for a REO or short sale, try looking in the following places: Friend, coworker, or family recommendation: Most likely, someone you know just bought a house. Request a reference to their agent, then contact to enquire about experience with REO and short sales. In general, short sale referral agents who don't deal with bank-owned or short sale deals are aware of those that do. The recommending agent has an additional incentive to ensure that you are placed in the appropriate hands since they won't receive a referral fee if the deal doesn't close. This is because agents often pay each other referral fees. Speak with agents at open houses: As long as you aren't there to purchase that particular property, it doesn't really matter if the open house is being hosted by the listed agent or another agent from the same office. Open houses provide buyers with a casual, unpressurized setting to speak with other agents. Find REO agents online. A lot of agents blog about their experiences. Don't let a site entice you into a business that only uses keywords to drive traffic to its website. Use your preferred search engine to perform a "REO" or "short sale" search. By REO and short sale agents, sort MLS records: If you have a buddy in the real estate industry who has access to the MLS, do a search by restricting the results to REOs and short sales, then retrieve the closed sales over the previous six months in your selected ZIP code or neighborhood.Advantages of Using a REO
Using a REO to assist you in your search for a home has certain advantages. Depending on how long the bank has owned the property, they could be willing to make certain accommodations or compromises. Unlike a foreclosure, you'll get a title from the bank that is free and clear of any claims made against the property. When you buy a home after a typical foreclosure, you take on any pending claims against it.