REO Properties
I specialize in representing buyers in the purchase of Distressed and REO properties.
What is an REO property?
A property upon which the lending institution has foreclosed and that was not purchased at the auction. The lending institution lists the property with a Realtor, trying to recuperate as much as possible from the sale.
Who Pays the sales commission on an REO Property?
When the listing agent puts the property in the Realtor’s MLS (Multiple Listing Service) they offer a commission to any Realtor who brings a buyer who completes the purchase--so the Bank pays the commission. Therefore, when I represent a buyer, he/she receives professional representation completely FREE OF CHARGE!
What are the pitfalls of purchasing an REO property?
Care should be exercised in dealing with REO properties. All REO sales are made on an “AS IS” basis. The bank will require the buyer to sign a special disclosure that releases the bank from future liability if a problem should a problem arise after the sale. Therefore, it is imperative that the buyer perform all necessary inspections prior to completing the purchase. The buyer usually has to pay for these inspections, therefore the associated costs should be considered when making an offer. (A pest and whole house inspection are the minimum with a cost of about
$500.) However, in some cases, roof, well, septic, pool or other inspections may also be prudent. Buyers should base their purchase decisions on their evaluation of the property, the inspection reports, advice from trusted tradesmen and the expertise of their Realtor.
Are REO properties usually the best buy?
REO properties are not all well priced. The banks, like most sellers, tend to overprice these properties when they first come on to the market. Those prices come down over time and many REO properties that have been on the market for some time are often good buys. When one of my clients identifies a property that they like, I research it thoroughly. Before making a final decision my clients know how much the bank has invested, how long it has actually been on the market (listing agents have ways of disguising this statistic), what the comparable properties in the area have sold for and are selling for and any other salient facts needed to make an informed decision.
I monitor over two dozen REO properties currently on the market and can provide you with the pertinent information on those, or any other REO or DISTRESSED property on the market in El Dorado, Placer or Sacramento counties. I would be pleased to represent you in the buying process of any REO property.
