The other day I met with a first time home buyer who works in the city for an advertising agency and she asked me about REOs and if she should consider buying one.
The short answer is yes, but we are getting ahead of ourselves what exactly is an REO anyway?
REO is short for Real Estate Owned property. These properties are most often distressed properties that a bank has bought and has a free and clear title to sell in the real estate market. Most REOs have gone to sale at a public auction and were not bought and as a result the bank has the opportunity to re list the property for sale. Banks want to sell these properties as fast as they can so they can recoup their investment and as a result prices on these properties are tremendous opportunities. Typically the price of an REO vs. a regular sale property is 30% less or sometimes more, however these properties are not turn key ready and usually require some work.
These properties are sold as is but that doesn't mean you can't get an inspecition prior to closing and I absolutely advise my clients to get an inspection bfore the sale so they know what repairs or costs they will have to incur prior to owning the home or purchasing a similar property that is a regular sale.
REOs are great opportunities provided you have a little bit of cash set aside for repairs and you don't mind the work. Most REOs unlike short sales close in 45 days or less because the price has already been set by the bank. The only hoops you will need to be ready to jump through are getting pre-qualified by the bank's preferred lender. This is usually just a formality and after you are pre- approved the buyer has the right to choose a a different lender if they would like.
If you would like to search for REO properties in Marin County you can go to my Websites for a list of REOs that are on MLS at www.marincountyreos.com or if you are looking for more information on REOs that are not on the market send me an email and I will get you a list. Additionally you can review www.marcobrienrealty.com for upcoming auctions, pre-foreclosure and REOs.