Educate Buyers on REO Properties

Image of key with REO, bank owned, short sale, and foreclosure over it.One thing you should never lose sight of in real estate is the gulf between what you know and take for granted and what buyers know about real estate. You may assume that buyers understand simple concepts in real estate… and that assumption can be costly.

Take, for example, the fact that most buyers don’t know the difference between a short sale and a home in foreclosure. Buyers tend to think that homes on the market in foreclosure are entangled with the same difficulties as a short sale! This is often enough to put them off making an offer.

The key is explaining the differences between REO properties and short sales. Help buyers understand that foreclosures are properties that banks want to clear from their books, and that they are not necessarily in a situation where a homeowner is trying to convince the mortgage holder to take less than the outstanding mortgage.

Did you also know many buyers assume foreclosed properties are trashed or in bad shape? The stigma and stereotypes associated with foreclosure bring to mind worst case scenarios which you know simply aren’t always true.

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