The REO market is booming in the Metro NY, Long Island area right now. Despite the publicity that this huge market is receiving now, there is still some confusion among the general public about what REO property really is. Here are some frequently asked questions and my answers:
What is REO property?
REO stands for Real Estate Owned, this is a term for property that has been foreclosed upon and failed to sell at auction. The bank or lender now owns the property and will look to sell it for fair market value minus repairs.
Aren’t REO properties usually in bad shape?
Some are, some are in relatively good shape needing only minor repairs. The important thing to remember is that REO property is sold “As Is” and the asking price will reflect how much repair work the home will need. The more damage the lower the asking price.
Isn’t it risky buying REO property?
Not if you work with professionals. REO property is very similar to buying traditional real estate. You can inspect REO property and even have professionals write estimates before making an offer.
Is financing different when purchasing REO?
Generally it is the same or very similar. The only difference is that escrow for REO property is usually quicker and almost always has a very strict timeline.
Do you still have questions about REO property? Give us a call at Island Advantage Realty LLC. We’ll be happy to answer all of your questions.
The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances. Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action. For further information or questions please contact Gabriella@IARNY.com
I found your blog on MSN Search. Nice writing. I will check back to read more.
Eric Hundin