Dollars and Sense of REO

Written by Gabriella for Island Advantage Realty, LLC

Buying REO property takes dollars and sense. Fortunately for you it usually takes less dollars than a traditional home. REO properties are bank owned. In most cases they are foreclosure homes that failed to sell at auction, now the bank or lender is forced to sell the home for fair market value minus the cost of necessary repairs. In most cases this means a savings to the buyer of between 3%-20%. When you think about saving 10, 15 or even 20% on your next home purchase, it's quite mind boggling. If you haven't owned a home in the last three years you may be eligible to receive a tax credit equaling up to $8,000 on your new home purchased before December 1st 2009.

Imagine looking at a home that is valued at $250,000 in the traditional market. The house next door to it is an REO property with comparable features but it has sat empty for several months and is in need of several key repairs. The home is being offered for $220,000 in its "as is" state. The smart couple buying the property also qualifies for the tax credit and receive an additional $8,000 at tax time, simply for purchasing the home before December 1st. The final cost of the home is $212,000, the couple are now homeowners with $38,000 worth of equity built into their home, not a bad way to start out home ownership. Their final savings is more than 15%. This is just one of the reasons why REO properties make good sense for American families.

If you are interested in learning more about REO properties available in the metro NY or Long Island areas, please call us at Island Advantage Realty, LLC. We are experts in the field of REO properties and we look forward to showing you this exciting opportunity to own a home.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances. Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.

For further information or questions please contact Gabriella@IARNY.com Island Advantage Realty, LLC specializes in Foreclosures and Bank Owned properties in the Metro NY and Long Island Areas. They are dedicated to educating home buyers about the home buying process in the Foreclosure and REO markets.

Posted in Buy Foreclosure, Metro NY REO, REO BASICS, REO Investment | Tagged Buying Foreclosures, Buying REO, IARNY, Island Advantage Realty LLC, Long Island REO, NY Foreclosures, NY REO, REO NY