REOs Defined
REO or real estate owned properties are those that do not sell during a foreclosure auction. During a foreclosure auction, the owner will attempt to sell the house for as much as possible in order to avoid a foreclosure. However, in many instances, a foreclosure auction will not draw any bidders and thus the owner will not sell his property. The bank will then take possession of the property and the owner will lose his home. These homes are classified as REO homes.
Minnesota REO Market
For the previous owner of an REO home, the aftermath can be devastating. They will be evicted and lose their home. However, for potential buyers, REO homes can be a literal real estate gold mine. The reason is because REO properties are considered a headache for the banks and thus they will most likely want to sell them fast… and cheap.
Most REO properties are vacant and fixed up by the financial institutes in order to ensure a quick sale. They are managed by a certain department that will deal directly with REO properties.
Is an REO Right for Me?
REO homes are attractive to investors and home buyers for a number of reasons. For many first home buyers, a REO home is a more affordable and viable first-home-buying option, especially as the cost of housing continues to rise. First home buyers are able to walk away with their dream first home at a realistic price.
Investors can benefit from REO homes as well. Many investors will seek out homes to either rent or re-sell. Even REO homes with a few flaws can easily be fixed up. However, it is important to weigh in the costs and look into the demographics of any property, REO or not. Most REO properties are sold in an ‘as-is’ condition and you may need to perform a buyer’s inspection as well as a cash flow analysis to determine if the property will work for your situation. Like any investment, it pays to do the research and to speak with a Minnesota REO real estate expert.
The Minnesota REO Process
The problem with REO property is that it can be difficult to make a connection with the financial institute. There is a lot of bargaining and paperwork involved. You may be confused about the tax liens as well as the different costs needed to take over the property. An experienced Minnesota REO agent can help you with these concerns. Instead of dealing with offers, counter-offers and contracts, an REO agent will do the work for you, ensuring you get exactly what you want without the real estate headache that often comes with buying REO property.
Minnesota REO Real Estate Agent Team
Edina Realty’s Kris Lindahl has years of experience in REO property and has the process of buying and selling down to an art. As a CDPE (certified distressed property agent), Kris Lindahl can ensure you walk away with exactly what you are looking for in real estate owned property – a great home, a great deal and a great outlook toward the real estate future!
Contact’s Edina’s best REO real estate agent at 763-607-1415 and speak to Kris today!
