REO Properties simply means “real estate owned” – in actuality the bank owns a home and reselling it in the market.
REO properties are being snapped up quickly in the Las Vegas, especially in the $0-200K price range, typically with multiple offers above list price and in many cases, all cash offers from investors.
Overview of REO Properties
The bank does not want to sit on or hold an REO Property financially for any length of time; they have an incentive to get an REO Property off their books as quickly as possible.
REO Properties are selling as they have in the past; be forewarned there can be a great deal of competition for REO Property, especially in price ranges that are desirable to investors; i.e. in the $0-200K price range.You may be competing with all cash offers.
Since we as your agent (or whoever you work with) is working directly with a bank we have the ability to ask them to pay closing costs as part of the transaction. They are acting as the seller and the lender in some cases, depending upon your financing arrangements.
In most cases an REO Property is vacant, as the homeowner went through a foreclosure, enabling you to get a sense for the property without worrying about any additional impact on the property that could occur if the home were occupied.
In today’s market here in Las Vegas REO Properties are typically 40-60% below the previous selling price for the home 1-3 years ago and in many cases a new home cannot be built for what you are paying for REO Properties/Foreclosures.
Dealing with banks is quite different from individual homeowners, they have entire departments that are involved in the sales process; necessitating a review process that can at times be lengthier and more cumbersome than dealing with a consumer. Also, banks are definitely aware of market conditions and pricing issues – they have criteria in mind for the sale of REO Properties.
Making an Offer on REO Properties
Prior to making an offer on REO Properties, we would recommend letting your agent contact the bank to ask the following questions.
- What type of inspection reports have been made?
- What work (if any) has the bank agreed to do in order to make the home marketable?
- How long will it typically take for a bank to accept an offer?
- How should your agent deliver an offer (usually via fax or email)?
- Is there a specialized “as is” form the bank utilizes?
Most of our agents are Certified Distressed Property Experts; meaning, they have taken specialized training to handle REO Properties, enabling them to add tangible value to your real estate transaction.
