REO Properties Advantages and Disadvantages
There are pros and cons to buying REO properties. An advantage of buying an REO property is that most REO properties are below market value. The reason for this is that REO properties are properties that are owned by the bank. Since the bank is responsible for property taxes, they will be more than happy to sell it to you for below market value. Another advantage of buying REO properties is that there is less competition. Not all real estate investors are aware of REO properties.
One final advantage of REO properties is that REO properties are easy to find. Most banks have several and will be happy to sell them. One downside to buying REO properties is that when you buy REO properties, you buy them as is. Usually, you will have to call the electric, gas, and water companies to get them turned on. A next downside to buying REO properties is that you will have to pay for all the repairs yourself if the property needs them. It is important to know what is on the property that needs to be fixed before purchasing the property.
One final downside to buying REO properties is that you won’t know about the property’s past. One way to overcome this is to do a little research on the property. A good place to look is public records. When it comes to buying properties REO has its advantages and disadvantages. With the information you read here you will have an idea of what they are.