REO homes are a great way to invest in a home or rental property. The value of these homes can give you instant equity in a property. You’ll get your home for far less than you would pay for a home being sold by the owner, but you do want to take proper precautions when you’re evaluating whether the home is a good deal.
Searching the real estate comps using InvestorComps to gain valuation information gives you an edge up when considering homes. Keeping in mind that a lower price isn’t always a bargain.
When you’re considering REO homes there are several problem areas to keep watch for. If you live in the area, you can check most of these yourself, but hiring a Home Inspector is preferable. For just a few hundred dollars, they can do a thorough inspection and give you a detailed report on the condition of your REO home. You may be pleased to find that the home is
If you get a less positive home inspection report, it can help you determine whether the house is right for you. InvestorComps gives you the tools to make wise decisions and lets you determine if any needed repairs are worth your effort. In many cases, the problems found by a home inspection can be readily fixed and you’ll still pay less than you would for a home for sale by the owners or through a standard real estate listing. If the repairs needed are overwhelming, however, you can decide to walk away without bidding on the REO home you’ve been looking at. Fortunately, there are currently thousands of foreclosed homes for sale, and the next one you look at may be the perfect one for you.
Remember getting your comps and determine after repair value using your InvestorComps account will help you determine if the property will work for your needs and goals.