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Upper Marlboro REO’s Can Provide Real Value to Buyer

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Real Estate Agent with Samson Properties

REO

There are acronyms that have grown so familiar that they are more like words than the phrases they represent (think “SCUBA for self-contained underwater breathing apparatus or “AWOL” for absent without leave).  Upper Marlboro REO properties aren’t in that category. Most people have never heard of REOs, although they are familiar with what they stand for.

REO is the acronym for ‘Real Estate Owned,’ but even that doesn’t help (every bit of real estate is owned!)

In case you are thinking that REO looks a lot like OREO, and that it could have something to do with the U.S.’s most popular cookie, you are closer to the truth than you might imagine. REO is shortened from a financial term used by banks: “Other Real Estate Owned”—OREO—meaning real estate that is owned by the bank, but not directly connected to its banking business.

Which is very much on point for what REO opportunities represent. As the OREO designation indicates, it’s not directly connected with the bank’s assets. The bank wants to get rid of it…be done with it...lose it!

Enter the essence of a REO opportunity. It’s a home with an owner who wants to sell; is motivated to sell!

Then again…the essence of what the bank does best is to make money. It lent some to the former owners, and now it’s taking in zero from the monthly payments that aren’t happening. So although, they’d like to get rid of property, they’d also like to get back as much money as possible.

Enter the essence of the hitch in the REO opportunity.

If you are a potential home buyer who is a true bargain hunter, one of the local REO properties could be of interest and working with a real estate agent is usually most reliable.

Then you have to be prepared for today’s REO realities. Gone are the scads of REOs that flooded the market after the financial meltdown. Today, there are 17 REO properties in Upper Marlboro.  Bank are likely to have established an asking price that is reasonable rather than spectacularly low. Your agent will help assemble comparable property prices to aid evaluation. Too, because buying an REO is an “as is” transaction, you will benefit from working with a team of experts (Realtor®, lawyer, perhaps a contractor) who can work to protect your interests (for instance, by building in an escape clause in your offer letter in case unforeseen property damage turns up later).

Upper Marlboro REO opportunities can be terrific finds—and so can others that involve less complication. There is one sure way to investigate the values that are out there: contact me!

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Denise Dimares, Realtor

Certified Default Resolution Specialist

The Agent who Informs, Inspires, Empowers and Transforms Lives

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