What does REO mean anyway? How is this different from the typical buying process? When considering a REO property - as with all properties - it is important to be well informed so you're well aware of the process from the first handshake through the closing.
Q. What does REO mean?
A. REO is an acronym for Real Estate Owned. REO is a financial industry term referring to properties that an institution has foreclosed upon and now owns.
Q. How do I submit an offer?
A. Offers are submitted via Sales Agent. We price our properties in accordance with the local market and expect to sell at market value. As with any property listing, our asking price takes into account its condition as compared with the local market.
Q. After submitting my offer, how long should it take to receive a response?
A. Upon offer being submitted, an offer acceptance or counter offer to our listing agent will be received within a short but variable timeline. The listing agent will inform your buyer's agent of client's response if you are working with a separate agent, or you directly. If an offer is submitted during the weekend, it will be reviewed on the next business day.
Q. What if the property requires repairs, either minor or substantial?
A. Make sure that you speak with the listing agent to ensure that you understand the terms of our listing clearly. In most cases, the property will be offered in an "as is" condition, with the list price reflecting its condition. When purchasing a property "as is", ensure you've done your homework to clearly understand the structural and mechanical condition of the building, HVAC, internal plumbing, the well and septic system. Depending upon the condition of these components of the home, the types of financing available may be impacted. However, there are special loan products available that will lend on the "after improved" value of the home thereby making it possible to purchase even the most neglected property and to make it the home of your dreams.
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