I can't believe that there are some people who lump REO/Bank-owned/Foreclosure homes in with short sales as being difficult to work with. REO (real estate owned), bank-owned, and foreclosures are the same thing...the bank owns them outright and wants to sell them.
Just like in other parts of the country, the real estate market here in the Boise, Idaho area is heavily influenced by this type of home.
For buyers, the bank-owned properties are GREAT to work with
1. They are generally vacant.
2. They are easy to negotiate with and get to their bottom line.
3. They are discounting these properties TREMENDOUSLY to get them sold.
There are some negatives, too:
1. You generally buy "as-is", which means the inspection is pretty much for your own information. I have had deals with banks where they did do some repairs. Each one is different in this regard.
2. Sometimes the homes don't show as nicely. However, good buyers can see through a little bit of inconvenience to get a great deal!
Don't be afraid to look at bank-owned properties. When you view them, relax and try to see what the posisiblities of the home are...and there can are many!
I work as an REO Listing Specialist, assisting banks in their process to sell homes. This perspective has taught me that banks just don't want these homes. They do want to protect the value of the property, but in the end just want to get it sold. With good help and educated buyers, it can truly be a win-win for both bank and buyer.
Adam Levanger, Realtor
Silvercreek Realty Group, agent