Finding a great REO property is not easy. It’s not just one or two that are hiding in the shadows. The market is saturated with these properties and most of them are going to be subpar, so finding the diamond in the rough is going to require some ingenuity and a little bit of luck. It may take some time, but it can be done if you follow these tips… Finding a great REO property is not easy. It’s not just one or two that are hidden in the shadows. The market is saturated with these properties and most of them are going to be subpar, so finding the diamond in the rough is going to require some ingenuity and a little bit of luck. It may take some time, but it can be done if you follow these tips…
Know your market
There are a few things you should know before you head out and start looking for an REO property. First, you should understand the market you’re in. You’ll want to make sure you know what types of properties are currently available in your area, as well as the price and quality level of these properties. Then, you’ll want to study what types of buyers are currently buying properties too. Are they first-time home buyers or is there a major shift in market activity? What are these buyers’ budgets? Are they flexible or are they set on specific types of homes?
Research properties before visiting them
Be sure to do your research before you go and check out any potential properties. You want to go with a strategy that will be as efficient as possible, so take the time out to establish a prioritized list of the properties you’re interested in and the research you did on each one. Then, head over to the properties and have someone show you around. When you have a chance to have someone show you around, walk through the home with them and make sure you understand the layout and what makes it unique. Do you like how the appliances are? How about the layout of the bedrooms? Are there any features that are missing that you wish were there? Make sure you check these things out so you’re not walking into a home and immediately regretting that decision
Network, while you’re out, walking
While you’re out walking, take the time to get a feel for the type of people you’re meeting. Walk up to a group of people, introduce yourself, and see if you can start a conversation with them. If you can see if you can find out where they’re from and what they do. Are they current homeowners? What are their incomes? What are they looking for in a potential home? These types of conversations can yield a lot of information. You can also ask people what homes they like. This is a great way to get a sense of what types of homes are currently selling. You might also be surprised by what people have to say, and they might give you some insight into a potential property too!
Keep an eye out on the internet for REO property sales too
Some REO properties will have their sales information posted online. Make sure you keep an eye out for these! You can also search any local realtor sites too. You want to make sure you’re keeping your ear to the ground and looking for these types of sales. You’re trying to collect as much information as possible, so you don’t want to miss a single one. If a property is open for inspections, you want to make sure you’re keeping an eye on those too. Make sure you can get a sense of how seriously the listing agent is taking this property and what the market might be like in a few months.
Finding that perfect REO property can be difficult, but with a little bit of preparation and creativity, you can find a great deal. Just remember to do your research, network with others, and keep an eye out for sales on the internet. And most importantly, be patient. There are plenty of great deals to be had in the real estate market, it just might take a little bit of time to find them.