Many buyers wonder if it's worthwhile to use an agent in purchasing REOs. There are many advantages to working with a professional real estate foreclosure agent, especially if you are a first-time homebuyer, a beginner investor, or inexperienced with buying bank owned properties.
Working with a realtor in an REO property purchase greatly lessens the work of the buyer. There are many agents across the United States that specialize in selling REO properties, so having a professional with this level of expertise on your side could greatly help you, in addition to their existing core knowledge and credentials. Agents in your area know the market condition and prices, and many agents will have an understanding of REO properties and their availability as well. Also, most lenders prefer to use a listing agent to help them sell the property. After all, a professional foreclosure real estate agent has a better command of the market than most bankers.
Fixer-uppers can be a great real estate foreclosure to buy, because most banks can't be bothered with repairs. There are great fixer-upper deals if you have the time and patience to make the necessary improvements. Beware of an Investment Property that is in very poor condition. You don't want to get stuck with a foreclosure house that costs more to repair than you had originally planned.
Finally, there are no upfront, out-of-pocket costs when working with an agent. Buyers do not pay their realtor until the deal is closed, and the commission is deducted from the proceeds of the sale.
Both Bank Homes Direct and its parent company RealtyTrac have referral programs that connect prospective buyers to pre-screened agents across the country.
