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Interested in REO property or a foreclosure in Las Vegas?
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Making an offer on a bank-owned property is not something to be taken casually.
Should you have questions regarding real estate in Las Vegas, Nevada, call me or send me an e-mail.
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What's an REO?
"REO" or Real Estate Owned are properties which have gone through foreclosure that the bank or mortgage company currently holds. This is unlike a property up for foreclosure auction.
If you buy a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. To top everything off, you'll receive the property totally as is. That possibly will involve standing liens and even current residents that may require removal.
A bank-owned property, on the other hand, is a much neater and attractive option. The REO property was unable to find a buyer during foreclosure auction. Now the lender owns it. The bank will handle the elimination of tax liens, evict occupants if needed and generally plan for the issuance of a title insurance policy to the buyer at closing.
Note that REOs may be exempt from normal disclosure requirements.
For example, in North Carolina, it is optional for foreclosures to have a Property Disclosure Statement,
a document that normally requires sellers to disclose any defects they are knowledgeable of.
By hiring Keller Williams Realty Las Vegas, you can rest assured knowing all parties are fulfilling Nevada state disclosure requirements.
Are REO properties a bargain in Clark County?
It is commonly believed that any REO must be a steal and a possibility for easy money. This frequently isn't true. You have to be prudent about buying a repossession if your intent is make a profit. While it's true that the bank is usually anxious to sell it promptly, they are also looking to minimize any losses.
When considering what to pay for REO property, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale.
The bargains with money making potential exist, and many people do very well buying and selling foreclosures. However there are also many REOs that are not good buys and may not be money makers.
Ready to make an offer?
Most lenders have staff dedicated to REO that you'll work with when buying REO property from them. Usually the REO department will use a listing agent to get their REO properties listed on the local MLS.
Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and find out as much as you can about their knowledge regarding the condition of the property and what their process is for getting offers. Since banks usually sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for unseen damage and retract the offer if you find it.
As with making any offer on real estate, you'll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.
Once you've presented your offer, it's customary for the bank to counter offer. Then it will be up to you to decide whether to accept their counter, or make another counter offer.
Understand, you'll be dealing with a process that most likely involves multiple people at the bank, and they don't work evenings or weekends. It's not uncommon for there to be days or even weeks of going back and forth. Keller Williams Realty Las Vegas is are used to working around the schedules of this type of seller and will do everything possible to ensure there are no unnecessary delays.
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