What is an REO and should I buy one?
Real Estate-owned (REO) properties are often below market value (compared to owner occupied listings) that are usually owned by a bank or real estate company. REOs are often foreclosures that have been taken back by the bank and sold "as is." (see Ask A Guru regarding "as is where is" properties). Great care must be taken by buyers of REO properties as these properties may have serious undisclosed defects, such as structural and/or cosmetic as well as title issues.
Listing agents of REO properties may allow a potential buyer to conduct a professional property inspection (at Buyer's expense) PRIOR TO submitting an offer to purchase. Always ask for such permission and if it is refused, caveat emptor! Bottom line, you may find a great REO deal. Just do your due diligence before you commit and partner with a Realtor to make the best informed decision possible.

Posted By: Carol Davanay on Friday, February 12, 2010